0Money-Weighted Rate Of Return (MWRR)
One measure of the performance is the yield earned on the fund over the period.This is also known as MWRR.It is the interest Rate satisfying equation of value incorporating the initial and final fund value as well as the intermediate net cash flow.
The equation of value in calculating MWRR only takes account of new money. Any cash flow generated by the fund itself may be ignored.
Definition Of New Money:
This includes all the extra money paid into the fund that was not generated by the fund itself. Withdrawl from the fund means negative new money.
