calculating fund performance

Discussion in 'Trading' started by dividend, Sep 14, 2007.

  1. Hi. How do funds calculate their monthly or yearly performance? Is it based on change in net assets or return on investment?

    Change in assets would mean if a $100 million fund lost $1 million but $1 million in new client money came in, then the net change would be 0.

    Return on investment would be $1 million lost on $100 million and 0 return on new cash so a loss of 1%.
  2. Performance is based on NAV (net asset value). It is different from AUM (assets under management).

    NAV can be down but AUM can be up at the same time and vice versa.