Comparison of Fund Performance Based on IRR

In the context of evaluating alternative investments, performance measurement is crucial. One important metric is the Internal Rate of Return (IRR), which reflects the expected annualized return of an investment. It is particularly important when comparing investments of different durations. A fund manager has provided IRR values for two funds over the last five years: Fund A has an IRR of 10%, and Fund B has an IRR of 12%. Based on the IRR, which fund appears to have performed better?