AIRR and IRR
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AIRR and IRR For the dates 1/1/2011 to 12/31/2011 under Reports - Performance Benchmark our club had a IRR 17.4% return; under Reports - Investment Performance our club had a AIRR 81.0% return. What is the difference between AIRR and IRR and what do these numbers mean? Thanks - Barry On Mon, Feb 13, 2012 at 10:19 PM, Barry Lee S. Detloff wrote: For the dates 1/1/2011 to 12/31/2011 under Reports - Hi Barry, AIRR and IRR are the same thing. I think the name was just shortened to fit in the title area better on the Performance Benchmark Report. It is Annualized Internal Rate of Return. In very simple terms, it is the annualized rate at which the investments you made grew during the time period you are reporting on. The difference between the two reports is that the Performance Benchmark report also includes your cash when calculating your return. The Investment Performance report is only looking at your securities. I really don't think the overall number on that report is terribly useful. If you'd like to learn more about IRR, we did a presentation on Benchmarking you might find interesting: https://www.bivio.com/clubmm/file/Public/benchmarking-your-portfolio.pdf -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio |
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