Smartenu Up Institute

Understanding Investment Returns

   Credit hours, other than displayed, are based on self-assessment.

    8 IAFE CE credits.

Under new rules, IIROC will be requiring investment dealers to provide retail clients with information on the percentage returns on their accounts, and the MFDA recently introduced new rules relating
to how mutual fund dealers and their representatives should communicate information to clients on the percentage returns on their accounts. 

Questions for Dealers

  • What factors should dealers take into account when implementing IIROC’s and the MFDA's  requirements?
  • What information on returns will dealers need to communicate to their clients?
  • How should account positions be valued for the purpose of calculating returns?
  • There are many ways to calculate investment returns. Which calculation methods are acceptable to IIROC and to the MFDA?
  • How should a dealer choose among the acceptable methods? What are Global Investment Performance Standards (GIPS)? 
  • What are the responsibilities of the dealer when a representative provides information on rates of return directly to clients?

Questions for Representatives

Once clients start seeing percentage returns on their statements, they will no doubt have questions for their representatives. For example:

  • How are rates of return calculated?
  • Of what use are the investment returns shown on my statement?
  • Is information about investment returns all that I need for decision-making?
  • What other information, if any, do I need to take into account?
  • The investment return on my statement does not agree with the rate of return disclosed by my mutual fund. In fact, it is much lower. Why?

The Understanding Investment Returns course provides clear answers to all these questions and many others. It includes many examples and uses actual screenshots of Excel worksheets for extra clarity. There are case studies and a quiz to test your understanding of the subject.

All course materials are provided. 

You may commence taking your online course upon confirmation of payment.  The confirmation will also include your username and password to enter the online classroom.  

You can start immediately or you can come back at a later time to complete the course.

Once you commence the exam you will not be allowed to navigate back to previous pages but must continue to completion.

Upon completion you will receive your SUI Course Certificate for submission to your firm and IIROC and receive your 8 hours of CE credits for the Understanding Investment Returns Course.


This course should be of particular interest to:
  • Financial, Securities, IT, Vendor, Technical and Operations staff seeking further CE courses
  • Employees of mutual fund buy side and sell side
  • Investment firms' counter parties at banks
  • Clearing corporation and depository staff 
  • Employees of regulatory agencies
  • Institutional client personnel
  • Industry vendors' employees
  • Investment and financial firms' front office, back office, IT, licensed staff
  • Persons presently outside the industry looking to increase specific financial knowledge or seek entry to the industry
No advance preparation required, however follow-up courses recommended are:
  • Brokerage Operations
  • Mutual Fund Regulation & Governance
  • Global Securities: Trading & Settlements
  • Compliance for the Securities Industry
  • Global Securities: Custody

The benefit to the student is:
  • Actually understanding investment returns, how they are calculated and which method to employ when communicating returns to clients
  • Obtaining the necessary Continuing Education IIROC and MFDA Credits
  • The Understanding Investment Returns course provides clear answers to all the questions listed in the Course Description and many others. It includes many examples and uses actual screenshots of Excel worksheets for extra clarity. There are case studies and a quiz to test your understanding of the subject.

  • Course Objective 
  • Structure Of The Course
Lesson 1:  The Importance of Investment Returns
  • Learning Objectives
  • What Is an Investment Return?
  • How Do Investors Use Investment Returns?
  • Reporting of Rate of Return  by Investment Funds
  • Reporting of Rate of Return by Dealers to Clients
  •  A Word of Caution
  • Recap
Lesson 2:  How to Value An Investment Fund
  • Learning Objectives
  • What is Net Asset Value?
  • What Asset Does a Fund Hold?
  • How to Value the Assets of an Investment Fund
  • How to Calculate the Total Assets
  • How to Calculate Liabilities
  • How to Calculate the Net Asset Value
  • The Role of the Fund Manager
  • What is the Significance of the NAV per Unit?
  • Recap
Lesson 3:  How to Calculate a Fund's Return
  • Learning Objectives
  • What Are the Components of a Fund's Return?
  • How to Calculate the Daily Return - Simple Case
  • How to Calculate a Fund's Daily Return - General Case
  • How to Calculate a Fund's Return For a Period
  • Time-Weighted Returns Are an Indicator of Fund Performance
  • A Shortcut Method Using the Net Asset Value per Unit
  • Global Investment Performance Standards
  • Recap
Lesson 4:  How to Calculate a Fund's Average Annual Return
  • Learning Objectives
  • What Returns Must Investment Funds Disclose?
  • The Role of Mutual Fund Distributions
  • How to Incorporate Distributions into the Calculation of Returns
  • The Regulatory Formula
  • Recap
Lesson 5:  Investor Returns
  • Learning Objectives
  • Investor Returns vs Fund Returns
  • Money Weighted Returns and their Significance
  • The Internal Rate of Return
  • The Modified Dietz Method
  • Implications for Dealers
  • Recap
Case Studies
Examples that you can review to test your knowledge of the calculations. Solutions are provided. 

There is a quiz at the end of the course book to help you improve your grasp of the material.

Online Exam 
Once you have completed the course you can begin the on-line exam to test your knowledge. Once you start the exam you cannot navigate back to previous pages.  You are only allowed to move forward within the exam.


Course Code: CEC01