Videos April 1, 2015

When to Utilize Money-Weighted and Time-Weighted Returns

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Which Performance Measurement Methodology is Right for Your Team?

Determining when your treasury team should use money-weighted returns (also known as dollar-weighted returns or internal rate of return), time-weighted returns, or both, requires an in-depth understanding of your company’s investment portfolio, organizational guidelines and policies, and reporting requirements and capabilities. Join us for this informative webinar that will provide detailed insights into the major factors influencing money-weighted and time-weighted return strategies, and explore best practices for implementing these methodologies.

Richard Chapman, Treasury Analyst, will discuss his personal lessons learned on determining when money-weighted and time-weighted returns are preferred, and provide insights on industry best practices to get the most out of each method.

Learning Objectives:

  • Understand the difference between money-weighted and time-weighted returns
  • Review the legal qualifiers behind each method
  • Discuss challenges faced by investment professionals when deciding which method to use
  • Best practices for implementing each method