Returns & Performance
Time-Weighted Return
Definition
What is Time-Weighted Return?
A performance measure that removes the effect of external cash-flow timing.
Example in practice
How This Looks in Practice
A fund managerThe licensed firm responsible for investment decisions and day-to-day management of a fund.'s result is measured independently of when the client deposits money.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceCapital Gain
The profit made when an asset or fund unit is sold for more than its cost.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.