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

See all articles by Wilson N. Sy

Wilson N. Sy

Investment Analytics Research

Date Written: April 2, 2009

Abstract

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

Sy, Wilson N., A Note on Investment Returns and Returns on Assets of Managed Funds (April 2, 2009). Australian Prudential Regulation Authority Working Paper - April 2009, Available at SSRN: https://ssrn.com/abstract=2880020 or http://dx.doi.org/10.2139/ssrn.2880020

Wilson N. Sy (Contact Author)

Investment Analytics Research ( email )

12 Gilchrist Place
Balmain East, NSW 2041
Australia
0424669802 (Phone)

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