Performance Perspectives Blog

Thoughts on performance measurement from David Spaulding and other members of our team.

That which gets measured, gets improved … or maybe not

That which gets measured, gets improved … or maybe not

I have to thank my lovely daughter-in-law, Monica, for providing this photo to me.  Consider this, a "fun" post. I was in the Army for almost five years, and stationed for 39 months with the 25th Infantry Division (Oahu, Hawaii; I was a Field Artillery officer)....

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ISN’T IT FINALLY TIME FOR YOU TO TAKE THE CIPM EXAM?

ISN’T IT FINALLY TIME FOR YOU TO TAKE THE CIPM EXAM?

Note: the following comes from this month's newsletters, but I wanted to get it out, given the urgency of registering! The CFA Institute has made a huge commitment in our segment of the industry by creating, maintaining and administering the Certificate in Investment...

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Spaulding,…, David Spaulding

Spaulding,…, David Spaulding

This year's Performance Measurement, Attribution & Risk (PMAR) conferences, like last year's, will have a theme. It started as "Casino Royale," but has been broadened to "Secret Agents," or more specifically,  "Secret Agents of  Performance Measurement." As with...

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10 Key points about rates of return

At the core of performance measurement is the rate of return. While we are often distracted by attribution, risk, and the Global Investment Performance Standards (GIPS(R)), the ROR is fundamental. And so, there are some key points we should agree on. 1. Use...

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A case for a mixed cash flow treatment policy

A case for a mixed cash flow treatment policy

Most of those who calculate rates of return have settled on either the end-of-day or start-of-day treatment for cash flows. Some time ago I arrived at the belief that a mixed treatment is better: Inflows: start-of-day   Outflows: end-of-day. While in bed one...

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Two things to remember about performance attribution

Two things to remember about performance attribution

To see a World in a Grain of Sand, And a Heaven in a Wild Flower, Hold Infinity in the palm of your hand, And Eternity in an hour William Blake   I believe there are two major things that performance measurement professionals need to know about attribution. #1...

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Order dependence vs. independence

Order dependence vs. independence

You may recall the commutative property of math- ematics, which essentially speaks of changing the order in which we do the math. This property holds for addition and multiplication; for example:   You'll may also remember that it doesn't hold for all...

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10 Key points about performance attribution

10 Key points about performance attribution

While the role performance attribution has continued to grow within the investment industry, it is, in the words of "Brinson, Hood & Beebower," still evolving. And in its evolution, there remain areas that need to be re-explored, reconsidered, revisited, and...

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