I often find the WSJ enlightening. Today provided a very insightful article by Chana R. Schoenberger ("Test Your Smarts ... on Currency Effects", page R5), where I learned that at least some fund analysts believe they cannot tell the impact of currency fluctuations on...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Not reporting the impact of currency fluctuations on mutual fund returns because (a) you don’t have to and (b) because it can’t be done … considered
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10 Common GIPS non-fatal mistakes
The Global Investment Performance Standards (GIPS(R)) are complex and often confusing. And while we have identified common mistakes which can lead to non-compliance (recall that GIPS is very "black-and-white," with no "materiality" for compliance: you either are or...
What kind of life do you wish to pursue?
Every once in awhile I want to read some poetry. Yesterday I turned to a book of John Keats’ work. In reading part of the introduction, I was motivated to read some of the letters that are included: it’s amazing how letter writing has become a "thing of the past.,"...
10 Performance Resolutions for 2014
I thought it fitting to offer some suggested resolutions for the coming year.1. I resolve to become more educated about my profession by reading more about performance and risk measurement. There are countless resources available. The Journal of Performance...
Getting our attribution correct
In our classes I often comment how much of what we do in investment performance and risk is borrowed from other disciplines. For example, "attribution" is employed by many, to identify the source(s), cause(s) and/or contributor(s) of something.In today's WSJ, Jason...
Happy New Year
Hoping that 2014 is a grand year for you. My it prove to be a prosperous, healthy, rewarding, stimulating, challenging, enlightening, stupendous, exciting, fulfilling, and pretty much fabulous one! The U.S. stock market had a great 2013; may this year be even better!
A great example of why BF is better than BHB
The late Damien Laker once opined that there was no difference between the two "Brinson models," Brinson-Fachler and Brinson-Hood-Beebower. I went out of my way to enlighten him on this subject, pointing out that the allocation effect for the latter uses only the...
Be mindful of the costs before setting new rules
In yesterday's Wall Street Journal there was an article regarding the impact of the so-called "Volker Rules" on small banks ("Banks Play Small Ball Vs. Volker," by Andrew B. Johnson and Andrew Ackerman). In it we find the following: "In a legal filing with the U.S....
Seasons’ Greetings!!! Merry Christmas!!! Happy New Year!!!
I am taking this week and next week off, so won't be posting very much. My office closed early today, and will close early on New Year's Eve. And, of course we'll be closed tomorrow and New Year's Day.2013 has been a grand year for our company in so many ways. I am...
Why do we compound returns?
John Simpson, CIPM and I are each (individually) teaching our Fundamentals of Performance Measurement course this week to two different clients: CalPERS in California and Florida State Board of Admin in, well, Florida, where else? One topic we take up is "multi-period...