A Note on Investment Returns and Returns on Assets of Managed Funds
Australian Prudential Regulation Authority Working Paper - April 2009
9 Pages Posted: 31 Jul 2018
Date Written: April 2, 2009
This technical note proves a simple mathematical relationship between the return on assets (ROA) of financial accounting standards and the return on investments (ROI) of investment performance standards. We show why this relationship is needed by users of APRA data to convert ROA to ROI for investment calculations such as for wealth accumulation estimates.
Keywords: Return, Investment, Finance, Accounting
JEL Classification: C80, G10, G11, M40
Suggested Citation: Suggested Citation