Question 1 On 14 April 2017 an investment fund had a value of £3 million. Further net cash flows of £200,000 and £300,00

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Question 1 On 14 April 2017 An Investment Fund Had A Value Of 3 Million Further Net Cash Flows Of 200 000 And 300 00 1 (36.44 KiB) Viewed 61 times

Question 1 On 14 April 2017 an investment fund had a value of £3 million. Further net cash flows of £200,000 and £300,000 were received on 1st October 2018 and on 1st April 2019. The fund had a value of £3.4 million on 30 September 2018 and a value of £3.7 million on 314 March 2019. The value of the fund on 31" March 2020 was £4 million. For the period 1st April 2017 to 31st March 2020, calculate the following to the nearest 0.1% 0 The annual effective time-weighted rate of return earned on the fund. [3 marks) (ii) The annual effective money-weighted rate of return earned on the fund. [6 marks) (H) Explain, with reasons, which of the two methods for calculating the rate of return, referred to in parts (1) and (II) above, is most appropriate for assessing the performance of the investment manager overseeing the fund during the given period of time. [3 marks) [Total 12 marks]