Enhancing Investment Performance Metrics

The current metric for return on all screens, a simple rate of return, presents a significant limitation for accurate performance evaluation. This method fails to account for the timing and magnitude of cash flows, which can lead to a distorted representation of performance and hinder effective benchmark comparisons. Can we investigate utilizing IRR, and in doing so, ensuring that benchmark comparisons are more meaningful and representative of actual investment performance, as they will correctly account for the time value of money.