How do you calculate annualised return?
All of our tracked strategies include an annualised return figure.
We calculate the return over the period since inception and then perform a calculation to figure out the annualised figure. i.e. 100 x ((1 + R)^(1/N) - 1) gives you your annualized return for the period, where N is the number of years since inception and R is the return since inception.
Please note that the annualised return is a historic (backward looking) figure. It does not reflect expected returns and past performance is not an indication of future returns!
