As the investment industry has evolved over the years, advisers’ use of hypothetical performance has become more prevalent. In the release referenced below, the SEC defines “hypothetical performance” as “performance results that were not actually achieved by any portfolio of …

Presenting MWR instead of TWR for Composites   For most managers a time-weighted return (TWR), which essentially removes or smooths the impact of external cash flows, is the preferred method to demonstrate how their strategy performed in portfolios over time.  …