Performance Benchmark Report

The Performance Benchmark Report report compares the performance produced by the investments in your club with the performance those same investments would have produced if you had invested in something else (such as an S&P 500 index mutual fund). You can compare to almost anything that has a ticker symbol.

The fields on the report are:

  • IRR - The Annualized Internal Rate of Return on all the member cash flows into and out of your club during the date range of the report. The IRR for the club investments is shown compared to the IRR that would have resulted from making identical investments in whatever you are comparing to.

    The calculation to determine IRR is quite complex. A simple way to understand what it tells you is to compare it to the interest rate paid on a bank account or CD. If you found a bank account paying the IRR rate of interest and made the same deposits and withdrawals in it that you've made in your club, you would have ended up with the same total return as you have gotten from your club.

  • Portfolio Value - The portfolio value as of the ending date of the report. The actual value of your club portfolio is shown, along with the estimated value for identical investments made in the selected alternative
  • Transaction Date - The date of an investment transaction in the selected alternative. (these are the dates you invested in your club)
  • Description - The type of an investment transaction. The possible types are:
    • Beginning market value - The value of the alternative portfolio on the starting date of the report (the same as the value of the club portfolio on that date).
    • Ending market value - The value of the alternative portfolio on the ending date of the report.
    • Member contribution - An investment into the club.
    • Member withdrawal - A withdrawal from the club.
    • Distribution reinvested - A distribution payment from the alternative investment which was reinvested into the alternative.
    • Split - A split in the fund price.
  • Investments - The dollar amount of an investment made into the alternative.
  • Returns - The dollar amount of an investment withdrawn from the alternative.
  • Shares - The number of shares of the alternative investment associated with a transaction.

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