The brain-bending world of money-weighted returns



A new performance measurement is beginning to appear on brokerage statements in Canada. It’s called a money-weighted return and it has the potential to cause a great deal of confusion.

Until recently, investors were presented with time-weighted returns when looking at the performance of mutual funds, indexes and other investments. These returns assume an initial amount of money is put into an investment and then it is held (with dividends or interest payments reinvested) for the period in question.


Also on The Globe and Mail

Money Monitor: Planning financially for living with adult children
(The Canadian Press)

Leave a Reply

Your email address will not be published. Required fields are marked *