by admin | Apr 15, 2010 | money-weighting, time-weighting
I’ve seen reports (for firm that have multiple managers) that show each manager’s time-weighted return, along with the fund’s overall time-weighted return. What is being conveyed by the comparison? And what does the overall return tell us? It would...
by admin | Jan 8, 2010 | money-weighting, rates of return, time-weighting
I’m spending most of this week on an assignment for a client who is engaged in a lawsuit; well, actually I’m doing the work for the client’s attorney. I’m charged with calculating returns for the stocks in the portfolio, and was given only...
by admin | Dec 30, 2009 | CIPM, ethics, GIPS, Global Investment Performance Standards, money-weighting, Returns, time-weighting
Calculating rates of return really isn’t that difficult. And while we may debate whether returns should be calculated using money-weighting or time-weighting, such issues pale in comparison with the broader aspect of ethics. I must confess that I initially...
by admin | Nov 17, 2009 | IRR, money-weighting, time-weighting
I got an e-mail from a retail client this week. That is, a retail client, whose rep works for one of our brokerage clients. This hadn’t happened before. This individual’s rep had passed him one of the issues of our newsletter, to explain how they calculate...
by admin | Oct 27, 2009 | IRR, money-weighting
I was asked this question yesterday and thought it worthy of comment. First, to clarify, “net” means after the fee is removed, while “gross” means before the fee is deducted. There are generally two reasons we show IRR. First, in cases where...
by admin | Oct 26, 2009 | GIPS, money-weighting, time-weighting
Several years ago I pleaded with the then, “powers that be,” to loosen the rules regarding the use of IRR for GIPS(R) compliant firms. At that time, the ONLY asset class for which the rules applied was private equity. The soon-to-be-published GIPS 2010...