How is the member performance calculated? Is it the
difference between total dues and the market value of units
or does it include total dues plus earnings and the market
value of units?

Thanks.

Judith

> How is the member performance calculated?

I assume you are referring to the Member Performance report
and the column titled "Annualized Internal Rate of Return"
(AIRR).

On that report, if you click on the "detail" link for a
member you will see all the information that goes into the
AIRR calculation for that member.

> Is it the difference between total dues
> and the market value of units

The calculation takes into account the total investments
(dues) the member has made and the current market value of
the units. It also takes into account the fact that
investments were made over time, not all at once. It's
*not* simply a comparison of the total investments with the
market value of the units (because that would ignore the
"time value of money").

What would it mean if the "Annualized Internal Rate of
Return" for a member is, say, 10%? That would mean that if
the member had made all their investments (dues) in a bank
savings account, and the interest paid by the savings
account amounted to 10% APY, then the current value of the
savings accounts would be the same as the current market
value of the member's cub units.

If you want to learn more, http://biwiki.editme.com/IRR is
one place to start.

Does that help?

-Jim Thomas