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How do you calculate Annualised Return?

Written by Daniel Smith

All of our tracked strategies include an annualised return figure.

We calculate the return over the period since inception and then perform a calculation to figure out the annualised figure. i.e. 100 x ((1 + R)^(1/N) - 1) gives you your annualized return for the period, where N is the number of years since inception and R is the return since inception.

Please note that the annualised return is a historic (backward looking) figure. It does not reflect expected returns and past performance is not an indication of future returns!

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