by admin | May 12, 2010 | GIPS, Global Investment Performance Standards, IRR, time-weighting
Almost 40 years ago I came across a “management test” (of the faux variety) which presented a variety of scenarios which required the “test taker” to respond to. For example: You’re at lunch with your largest client when for some reason...
by admin | Apr 21, 2010 | GIPS, Global Investment Performance Standards, money-weighting, time-weighting
We have a new client who wanted us to do a “non-GIPS(R) verification” of a composite. We do this type of work for clients who aren’t able (or choose not) to comply with the Global Investment Performance Standards. We typically begin by understanding...
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 27, 2009 | Returns, time-weighting
I stumbled upon a website today that provided the following brief explanation about returns: “To evaluate the performance of a portfolio manager, you measure average portfolio returns. A rate of return (ROR) is a percentage that reflects the appreciation or...
