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

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Withholding Tax

A tax deduction made at the source of the payment.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

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.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

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.

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Time-Weighted Rate of Return (TWRR)