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Total annual return is 46.02%
What is total annual return?
- An investment's geometric average yearly return over a specified time period is known as the annualised total return. The annualised return formula calculates how much a shareholder would make over time if the yearly return were compounded.
- The investor will use the following calculation to determine the total return rate (which is required to get the annualised return): Ending value - starting value / starting value
It just announced a year-end distribution of $1.20 per share in capital gains and $3.50 in dividends.
Assuming the NAV increased from $33.87 to $44.76, total annual return is
The total return rate (which is required to get the annualised return): Ending value - starting value / starting value
46.02%
((3.5+1.2+44.76)-33.87)/33.87
=46.02%
annual return = 40.02%
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