What is the 'Time-Weighted Rate of Return (TWRR)'? Definition & meaning

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

More terms

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Global Investment Performance Standards (GIPS)

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

Securities

Bonds and stocks.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Fundamentals

The data or information that is likely to impact a company's stock price.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

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Time-Weighted Rate of Return (TWRR)