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Identify whose outcome is being examined
A portfolio can have measured subperiod returns while its owner adds or removes capital between them. The linked rate and investor’s rate need not coincide because the second question depends on the amounts and timing of capital.
Compare the required records
| Feature | Time-weighted | Money-weighted |
|---|---|---|
| Core inputs | Subperiod boundary valuations and flows | Dated contributions, receipts and final value |
| Capital timing | Removed through correctly formed subperiod returns | Included in the rate equation |
| Primary result | Linked portfolio performance | Rate for the investor schedule |
| Data concern | Missing transfer-side valuations | Sign, timing and root interpretation |
Avoid an automatic manager judgment
Cash-flow control can be relevant when choosing a performance presentation, but the calculation alone does not identify who controlled each transfer. Keep that evidence separate. No standards-compliance assertion is made by this introductory comparison.
Report both when both questions matter
Use names and timing conventions rather than referring to an unqualified return. If the numbers differ, reconcile the capital exposure instead of assuming one must be a calculator error. A numerical rate does not by itself explain the underlying investment decisions.