total return

Also found in: Acronyms.

Total return

In performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest, interest on coupon interest, and any capital gain/loss) over some investment horizon.

Total Return

The complete amount one receives on an investment, expressed either as the rate of return or as a dollar figure. One calculates the total return simply by adding coupons or dividends to capital gains.

total return

The sum of dividend or interest income and any capital gain. Total return is generally considered a better measure of an investment's return than dividends or interest alone.

Total return.

Total return is your annual gain or loss on an equity or debt investment.

It includes dividends or interest, plus any change in the market value of the investment. When total return is expressed as a percentage, it's figured by dividing the increase or decrease in value, plus dividends or interest, by the original purchase price.

On bonds you hold to maturity, however, your total return is the same as your yield to maturity (YTM).

Calculating total return is more complex if your earnings have been reinvested, as they often are in a mutual fund, to buy more shares. But fund companies do that calculation on a regular basis.

total return

The sum of periodic income and property appreciation.
References in periodicals archive ?
These innovative products are intended to mimic the economics of a total return swap in futures form, allowing swap dealers and their end customers to avoid higher costs as a result of new swap margin rules," said Tim McCourt, CME Group Global Head of Equity Products.
REITs also performed well compared to the broader stock market on a five-year basis: the FTSE NAREIT All REITs Index delivered a compound annual total return of 16.
S&P Palestine BMI (US Dollar) Gross Total Return - 23/9/2011
Total return measures vary, but generally, total return is a ratio of investment income and capital gains to market value.
Thus, by extending the yield curve with the portion of the corporation's cash that serves as core, you can garner a meaningful total return and yield enhancement over conventional 90-day money market instruments.
Industrial properties were the highest performing in the index during the quarter with total return of 5.
International Game Technology (NYSE: IGT) hit "big, no whammies," with an average total return of 80.
Through November 1996, REITs recorded a total return of 23-45 percent, compared to 12-15 percent one year earlier.
Standard high street shops steamed ahead of all others with total return at 3.

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