Koersgewogen

Koersgewogen is a Dutch term that translates to "course-weighted" or "course-weighted average" in English. It is a financial concept used in the context of investment funds, particularly in the Netherlands. The term refers to the calculation of the average return of an investment fund, taking into account the duration of the investment. This is in contrast to a simple average, which does not consider the time factor.

The koersgewogen average is calculated by multiplying the return of each period by the duration of that period and then dividing by the total duration of the investment. This method gives a more accurate representation of the fund's performance over time, as it accounts for the impact of time on returns.

For example, if an investment fund has a return of 10% in the first year and a return of -5% in the second year, a simple average would be 2.5%, while a koersgewogen average would take into account that the negative return occurred after the positive return, potentially resulting in a lower overall return.

Koersgewogen is an important concept for investors, as it provides a more realistic view of a fund's performance. It is often used in the context of comparing the performance of different funds and in regulatory reporting. However, it is not universally used and its application can vary depending on the specific context and regulatory environment.