I recently conducted a software certification for a software vendor. I found some issues with their application of rates of return, and we've been going back-and-forth on it. One issue that arose was my belief that money-weighting is the appropriate approach for...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Why it’s okay to be “inconsistent” when reporting rates of return
read more
Passion for Performance Measurement
TSG often speaks about being passionate about performance measurement. Having passion for something is, we believe, a good thing. Passion for Music Before delving into the subject of passion for performance measurement, I thought I'd touch on passion in a different...
Fundamentals of Performance Measurement: TOTALLY revamped!
Our Fundamentals of Performance Measurement class, formerly known as Introduction to Performance Measurement, has undergone a pretty significant "facelift," so to speak. It has taken me quite some time to get it done, although one is never actually ever done with a...
Rates of Return: if you can’t explain it, change it!
We've been asked by a client to construct a single day, fairly intensive class on rates of return. Much of the material for the class comes from our Fundamentals of Investment Performance class, which we've been teaching for nearly 18 years. As you'd expect, plenty of...
Cui bono: mixing a little Latin with performance measurement
How a Latin phrase makes its way into performance measurement On my way to conduct a GIPS(R) verification, I was listening to Buckley and Mailer: The Difficult Friendship That Shaped the Sixties, by Kevin M. Schultz. As the book's title suggests, it's about two famous...
New GIPS guidance statement: Broadly Distributed Pooled Funds
A new GIPS guidance statement has arrived There's a new sheriff in town (in the form of a new GIPS guidance statement), and he's carrying some seriously new proposed requirements for GIPS(R) (Global Investment Performance Standards) compliant firms who are engaged in...
Game Theory & Performance Measurement
This post may be a bit of a stretch, but hoping you'll find it of interest, nonetheless. It'll show how game theory can tie into performance measurement. My wife and I are big fans of the television game show, Jeopardy. We watch it each night, and record it so that if...
Security valuation problems: just when you thought you had it figured out
Today's Wall Street Journal has two front page articles that deal with security valuation problems. "Investors Abandon Risky Funds" addresses the recent drop in the prices of high yield bonds. We find the following: "Some investors reported difficulties selling...
Isn’t Performance Measurement Just Math?
Our colleague and friend, Marshall Smith, CIPM of First Rate, recently posted the question that appears above, "Isn't Performance Measurement Just Math?," on LinkedIn. This, in turn takes you to their blog, where Marshall addresses this topic. I offered a brief...
Promoting market index cost transparency
Too many in our industry are unaware of the increases in benchmark costs. TSG is committed to promoting market index cost transparency, in order to shed increased light on this topic. For some time now, TSG has been working with three leading custodians (BNY Mellon,...