Brand Bitesize: Time Weighted Rate of Return

For those who are studying for any of the CII’s R02, J10, J12 or AF4 exams, this might be a useful reminder for you! We look at the Time Weighted Rate of Return calculation in this ‘bitesize’ video.

THIS VIDEO IS RELEVANT TO EXAMINABLE TAX YEAR 2022/23.

Time Weighted Rate of Return

The TWRR eliminates distortions caused by new money being added into an investment throughout a time period, by breaking the return of capital into sub-periods between the addition or withdrawal of capital. If you are studying towards R02, you’ll need to be aware of the theory involved in this, whereas for AF4, you’ll be expected to be able to do the calculation. This video summarises the calculation with an example to help cement understanding and appeal to those who prefer to learn visually. For more examples to test your understanding, take a look at our calculation workbooks.

Grab the resources you need!

If you’re studying for your CII R02 exam, and you’re aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself.  Click the link to download the R02 calculation workbook taster now!

Alternatively, you can try the taster for AF4, J10, or J12 if you’re studying for one of those exams.