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%.
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%.