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How to Calculate your Money-Weighted Rate of Return (MWRR)

By Justin Bender · June 5, 2015 - 0 comments

Starting in July 2016, dealers and portfolio advisors will be required to report investment performance to their clients. The money-weighted rate of return (MWRR) was chosen by the Canadian Securities Administrators (CSA) as the industry standard for these performance calculations. Although the MWRR is arguably more relevant to the individual investor (as it can reward or penalize investors ...

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How to Calculate Your Time-Weighted Rate of Return (TWRR)

By Justin Bender · May 26, 2015 - 0 comments

The Holy Grail of portfolio performance benchmarking is the time-weighted rate of return (TWRR). However, it requires daily portfolio valuations whenever an external cash flow (i.e. a contribution or withdrawal) occurs. Periods in which external cash flows occur are divided into sub-periods, each with its own total return calculation. These sub-period returns are then geometrically linked to...

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How to Calculate Your Portfolio’s Rate of Return

By Justin Bender · May 19, 2015 - 0 comments

Starting in July 2016, dealers and advisors will be required to provide a personal rate of return to their clients. Although this disclosure is a step in the right direction, it will likely lead to more confusion and frustration amongst clients and advisors if the results are not properly explained. There are various ways to calculate a rate of return - and each of them can add to your under...

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How do I report my US-listed Vanguard ETFs on Form T1135?

By Justin Bender · April 8, 2015 - 4 comments

With the 2014 tax deadline looming, this is becoming a very common question from DIY investors. Although there are still a number of uncertainties with regards to filling out the form, an investor with a relatively straight-forward situation should be able to muddle along for now. Step 1: Determine if Form T1135 applies to your situation If your US-listed Vanguard ETFs had a total cost b...

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Book Value Blunders

By Justin Bender · March 23, 2015 - 0 comments

Even the big bank discount brokerages mess up sometimes, and RBC Direct Investing’s Summary of Security Dispositions is a perfect example. Each year, DIY investors unknowingly rely on this summary while preparing their tax returns. The report is filled with plenty of disclaimers, indemnifying RBC of any errors or omissions contained within. Fair enough – in some cases, RBC would ...

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