All of my money was in one fund during the year covered by the annual statement. Why is my Personal Investment Performance different from the rate of return of that fund?
The Modified Dietz method of calculation is sensitive to large cash flows (e.g., loans, withdrawals, rollovers, or even contributions if the account balance is relatively small) and to volatility in the markets. If you were invested in one fund, and only one fund, during the statement year, cash flows into or out of that fund could cause the PIP rate of return on your statement to be slightly different from the fund’s rate of return.
Related Questions
- All of my money was in one fund during the year covered by the annual statement. Why is my Personal Investment Performance different from the rate of return of that fund?
- Is there a guaranteed Rate of Return on an investment in The Stanbic IBTC Guaranteed Investment Fund?
- How is investment management different from a hedge fund?
