by admin | May 9, 2011 | money-weighting, rates of return, time-weighting
Today’s animation discusses the fairly common situation, where a portfolio loses money but has a positive return.
by admin | Feb 23, 2011 | cash flows, rates of return
A colleague sent us a note recently inquiring about the proper treatment of accounts that have dividends reinvested; that is, how the flows are to be handled from a return perspective. The essential question is “should the money flowing into the account, to...
by admin | Feb 2, 2011 | GIPS, Global Investment Performance Standards, rates of return
I conducted a GIPS(R) (Global Investment Performance Standards) verification for a client on Monday and was asked if it made sense to calculate returns in multiple ways. That is, if they know that the client’s custodian or consultant calculates returns using a...
by admin | Mar 3, 2010 | rates of return
We recently received an inquiry from a client regarding netting of advisory fees: If an annual fee schedule is 60bps after you link the returns for 1 year it looks like returns were reduced by 88bps. I know is because we are linking and not adding or subtracting but...
by admin | Feb 11, 2010 | rates of return
I’m looking at a client report (fortunately not one that they would give to a client) that shows, for example, the return 41.29959483 percent. Such precision! To eight decimal places! I’m impressed. Well, actually I’m not.Actually, this is a waste of...
by admin | Jan 11, 2010 | rates of return
Last Friday I posed a question about how one would derive returns when they had limited data: month-end holdings and period transactions. A couple folks basically explained that this CAN be done. Here’s what you do: Take your holdings file and preceding...
