Tree with branch growths representing sub-period returns in Time-Weighted Rate of Return calculation.

Time-Weighted Rate of Return – TWR: Eliminating Cash Flow Distortions for Institutional Investors

Understanding Time-Weighted Rate of Return (TWR) The time-weighted rate of return, also known as the geometric mean return, represents the compound annual growth rate of an investment portfolio. This method is particularly valuable for institutional investors seeking to evaluate fund performance by eliminating distortions caused by cash flows in and

Read more