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Portfolio Management TWRR vs MWRR

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    • Avatar of frankthethankfrankthethank
      Participant
        • CFA Level 3
        14 Apr 2020 at 8:58 pm
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        A portfolio manager is EXPECTING a cash flow inflows in 17 days. Should he calculate his future return using TWRR or MWRR?

        Expecting.. So he has no control of funds?

        Shag should we use here?

        Thanks

      • Avatar of frankthethankfrankthethank
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          • CFA Level 3
          14 Apr 2020 at 9:48 pm
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          Yup that’s all the info, expect that kind of question in level 3…

        • Avatar of artyeaselartyeasel
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            14 Apr 2020 at 9:37 pm
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            frankthethank said:
            A portfolio manager is EXPECTING a cash flow inflows in 17 days. Should he calculate his future return using TWRR or MWRR?

            Is that all the information the question gave?

            If so, I would go for TWRR (investing when you’ve received money) rather than MWRR (investing at a timing of your choosing).

          • Avatar of fabianfabian
            Participant
              15 Apr 2020 at 6:05 am
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              Agree with TWRR. I think about it this way: if the PM can’t invest according to THEIR timeline, TWRR.

            • Avatar of frankthethankfrankthethank
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                • CFA Level 3
                14 Apr 2020 at 9:48 pm
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                So since he does not have total control I guess we should use TWRR

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