Starting in January 2017, Canadian investors may have difficulty comparing their performance to a suitable benchmark. This is because provincial securities regulators will require advisors to report money-weighted rates of return, which are less useful for benchmarking. By using an approximate time-weighted rate of return (such as the Modified Dietz method), investors will be better able to gauge their performance relative to index benchmarks.
For more calculators from Justin Bender, visit his Canadian Portfolio Manager website!