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    A money-weighted return is used to measure the performance of the total Fund, while a time-weighted return is used to assess investment performance of each asset class relative to its benchmark.

    Money-Weighted Return

    • The money-weighted return is calculated by applying weighted average of returns for each asset class based on daily investment balances.
    • The money-weighted return is used to measure returns of the total fund and each asset class.
    • Gain or loss is calculated on an accrual basis and by deducting all incurred expenses. However, administrative expenses (internal management fees and other indirect costs) are not deducted from a mid-year rate of return.
    Money-Weighted Return = (Total Income - Total Expense) / Average Investment Balance
    • 1)Total Income: sales profit, gain on valuation (including gain on foreign currency translation), interest income, dividend income, fee income, gain on foreign currency transaction, etc.
    • 2)Total Expense: sales loss, loss on valuation (including loss on foreign currency translation), loss on foreign currency transaction, trading expenses, investment management fee, fee expense and other direct and indirect costs for investing activities
    • 3)Average Investment Balance: ∑ daily book values / investment period

    Time-Weighted Return

    • The time-weighted return is calculated by applying a geometric mean for returns and dividing investment period based on accrual of new cash flow.
    • The time-weighted return is used to compare investment performance to benchmark.
    • Administrative expenses (internal management fees and other indirect costs) are not deducted from gain or loss.

    Time-Weighted Return = [(1+R1) × (1+R2) ...... (1+Rn)] - 1