Manager performance standards promulgated by the Association of Investment Management Research require that stock, bond, and real estate investment managers use time-weighted returns
for reporting investment performance.
Exhibit 4: Time-Weighted Return
for Barry and Samantha Barry Year 1 ($150-$100)/ $100=50% Year 2 ($350-$150-$100)/($150+$100)= 40% Year 3 ($270-$350-$100)/($350+$100)= (40%) Time-weighted return
Operating performance is strong, with the time-weighted return
Operating performance is good, with the time-weighted return
Operating performance is modest, with the time-weighted return
Operating performance has been strong, with the time-weighted return
on revenue from 1996 to 1999 at 11%.
Operating performance has been adequate, with the time-weighted return
on assets at 1.
The company's stand-alone operating performance is mixed, with the time-weighted return
on revenue from 1994-1998 at negative 0.
Operating performance has been very strong, with a time-weighted return
on revenue of 14% from 1996 to 1999.
Operating performance has been good, with the time-weighted return
on revenue from 1996 to 1999 at 9.
Powered by BI-SAM s best-in-class B-One performance calculation engine and underpinned by Broadridge s Investment Management technology, the solution provides complete performance reporting and absolute attribution analysis across multiple asset classes and dimensions of the business, including true time-weighted returns
at multiple levels, internal rates of return at fund level, benchmark comparisons and market segment decomposition.
Dean Altschuler (Bard Consulting, LLC) proposed a different technical approach to replace time-weighted returns
with dollar-weighted returns.