Annualized return
Shows the account's past growth pace translated into a one-year rate.
Annualized return translates the account's already observed growth pace into a one-year rate. Think of it like road speed: a car may drive fast for part of a trip, and the number says what that pace would look like over a full year, without promising the rest of the road will be the same.
It helps compare histories of different lengths. A 6-month account and a 3-year account are hard to compare by total percent alone, so the annual pace puts them on a common scale.
A positive value looks good only when read with drawdown, volatility and history length. 0-10% a year is often read as calm growth, 10-30% as strong, and 50%+ as aggressive or possibly inflated by a short stretch. A negative value means the observed history annualizes to a loss.
Example: an account grows from $10,000 to $11,000 in 6 months, or +10%. At the same pace for another 6 months it would reach $12,100, so the annualized pace is about +21%. That describes past speed, not next year's promise.
How we compute it
The basis is monthly TWR returns, where deposits and withdrawals are separated from performance. The annual pace is calculated over the available monthly chain, using the same basis as the rating's return-quality component, and is labelled as a forecast.