Dynamic Calculations

Dynamic Performance uses the settings of the underlying Performance database fields to determine the inputs and calculation that are used in place of the committed return for each level above the security level.

For the return type fields (the ones that have the Dynamic Weight set) the value committed to the Dynamic Weight field is converted to a weight and then multiplied by the return value in the field's Column. This contribution along with the weight is then summed at each level. The return is then calculated at each level by dividing the summed contribution by the summed weight.

For all other fields (the ones that do not have the Dynamic Weight set), the value committed to the field's Column is summed up at each level. As mentioned before, this allows you to use fields such as market value, investment base, flows, and gain/loss.
Once these values are calculated at all levels for each single period, they are passed into the multi period calculations.

Dynamic Multi Period Calculations

Some multi period performance fields require you to select both a return field and a weight field. For example, Performance Analysis fields with the return effect only require the Return field to be selected while Performance Attribution requires you to select both the return and the weight field to use.

If the multi period performance field requires that you specify a performance database field for the weight, the Dynamic Weight field setting is ignored. So in the above example, the Performance Analysis field with the return effect will use the Dynamic Weight field in the underlying Performance data field while the Performance Attribution fields will ignore the Dynamic Weight field and use the weight field selected in the Performance Attribution field itself. However, for consistent analyses, these would typically be the same field as the Dynamic Weight field.