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Common terminology used in SCF is described in the following table.

Term

Definition

Cash Flow

Any external contribution or withdrawal from a fund or account.
For example: Customer deposits $100 into an account or withdraws $50 from an account.

Money-Weighted Return

Investment return that reflects both timing and dollar amount of customer cash flows.

Time-Weighted Return

Manager Return that eliminates the effect of the timing and dollar amount of customer cash flows.