I recently conducted a "non-GIPS(R)" verification for a client's sector returns. They have sliced up their portfolio in a dozen ways (e.g., U.S. growth and value; small, mid, and large cap; emerging markets) and presented returns for a multi-year period. They chose to...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
Sector returns: with or without cash
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Press Release: TSG Appoints Mark Goodey – Associate for European Business Development
We have known Mark a long time, and respect and like him a great deal. We know that he will be a great addition to our team, and are anxious for him to join us. This new position demonstrates our commitment to the European market, and our desire to expand our services...
It’s not JUST about the numbers, but pretty darn close …
Last week I offered a theory as to why retail investors may not be interested in rates of return, and it resulted in numerous comments from readers. As I was preparing this post, I read the following in an "Op Ed" piece in today's WSJ, by David R. Henderson, titled...
Happy LDW (Labor Day Weekend)
Memorial Day is the "official" start of summer,and Labor Day the official end, despite the fact that both are technically off. But starting next week, we will pretty much return to "business as usual." Hoping you and your family had an enjoyable summer, and that this...
Why retail investors could care less about rates of return
I often hear from those who serve the retail market that they are rarely asked for their rates of return; this seems a bit odd, as it would make sense for investors to want to inquire into a prospective manager's track record.An article in this past weekend's WSJ...
“Cool Words”
As grandparents of two boys (ages four and soon-to-be two), my wife and I have become acquainted with the television show "Yo Gabba Gabba." A regular feature is called "cool tricks," where a guest displays something they think is, well, cool! For example:I...
Insights & Perspectives
It recently occurred to me how these two words, insights and perspectives, play a non insignificant (i.e., significant) role in performance measurement. I often reference both when I teach, but thought it appropriate to share some views here with you.InsightsMy...
What about us?
Earlier this year, the Global Investment Performance Standards (GIPS(R)) Executive Committee published a draft guidance statement which expands the reach of GIPS into the asset owner world. I have commented briefly on it here before, and wrote an article for Pensions...
Should retail accounts be shown a benchmark?
Last week, during a talk I was giving to a group of operations folks, someone asked my thoughts on showing benchmarks to retail investors; specifically, those that are non-discretionary.It's important to realize that benchmarks serve two purposes: first, as a way to...
Overselling time-weighting
For some time it's been my view that time-weighting was oversold.That is, when nearly 50 years ago (1966, to be exact) Peter Dietz published his dissertation, promoting a return method to eliminate or reduce the impact of cash flows, his idea was so powerful and...