What is 'Internal Rate of Return (IRR)'? Definition & meaning

More terms

Bond

Learn what a bond is

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Custodian bank

Learn what a custodian bank is.

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Internal Rate of Return (IRR)