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...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
![Why retail investors could care less about rates of return](https://tsgperformance.com/wp-content/uploads/2013/08/math.jpg)
Why retail investors could care less about rates of return
“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](https://tsgperformance.com/wp-content/uploads/2013/08/dictionary.jpg)
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?](https://tsgperformance.com/wp-content/uploads/2013/08/consult.jpg)
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Earlier this year, the Global Investment Performance Standards (GIPS(R)) Executive Committee published a draft guidance statement which expands the reach of GIPS into the asset owner world.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?](https://tsgperformance.com/wp-content/uploads/2013/08/benchmark-7.jpg)
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](https://tsgperformance.com/wp-content/uploads/2013/08/sales.jpg)
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...
![Combining time- and money-weighting](https://tsgperformance.com/wp-content/uploads/2013/08/mix-3.jpg)
Combining time- and money-weighting
I am in Montana this week, conducting a session titled "Current Topics in Performance Measurement" for a conference of operations folks. One individual asked about combining time- and money-weighting into a single number. I think the idea lacks merit, as it takes away...
![Revaluation vs. Repricing … there IS a difference](https://tsgperformance.com/wp-content/uploads/2013/08/calculate.jpg)
Revaluation vs. Repricing … there IS a difference
It is quite common today to find firms revalue their portfolios for large cash flows. But what do we mean by "revalue"? Is "repricing" enough?Think about this scenario: On January 31 the portfolio holds 20 different stocks, along with some cash.On February 15, a...
![Tech Survey to be Expanded](https://tsgperformance.com/wp-content/uploads/2013/08/technology.gif)
Tech Survey to be Expanded
TSG has been surveying the industry for 20 years on a variety of topics. This year we focus once again on performance and risk measurement technology, with two surveys:One for the usersOne for the suppliers.Until now the suppliers' survey has been sent only to...
![Cash can be your friend or enemy](https://tsgperformance.com/wp-content/uploads/2013/08/horse-race.jpg)
Cash can be your friend or enemy
I was interviewed by Julie Steinberg of the WSJ for an article that appeared this week ("These Two Funds Picked a Really Bad Day to Debut," August 5, page R1) regarding the impact contributions can have on a mutual fund's performance. While time-weighted returns...