I have a quick question for the techno group on this board.
I put together a welcome screen for our club meetings. It
covers our Valuation Date, Total Assets, NAV, current 52
week return, along with the S&P 500 Index and the Total
Market Index.

I usually get our return from the bivio Investment Report -
AIRR.

Then I get the index returns for the same period from the
bivio Performance Benchmark Report - IRR.

Typically, the club's rate on these reports is the same.
Today, they differ - 24.6% vs. 22.2%. The lower value was
the IRR. Can anyone tell me why?

Thanks,

Lynn O.

Lynn Ostrem writes:
> Typically, the club's rate on these reports is the same.
> Today, they differ - 24.6% vs. 22.2%. The lower value was
> the IRR. Can anyone tell me why?

One includes cash, and one doesn't. If you go to the Member
Performance Report, you'll see the same number as on the Performance
Benchmark. It's actually important to distinguish between investments
and cash. If you hold a lot of cash, it'll bring your AIRR towards
zero.

Clubs which can't make decisions about what to invest in might have
great investment performance for the stocks they pick, but the overall
AIRR may be quite low taking into cash.

Cheers,
Rob

> One includes cash, and one doesn't.

Thanks Rob! I didn't notice that. I learn something new everyday!

> Clubs which can't make decisions about what to invest in...

Or...clubs that just cleaned house and haven't had time to spend it! <G> My
club is full of spenders. They hate sitting on cash. This is probably why
I never noticed a difference in these returns before. No worries! Our club
meeting is tonight. I'm sure it all be gone!

Thanks again,

Lynn O.