Performance Perspectives Blog

When more is too much

by | Mar 9, 2010

As a GIPS(R) (Global Investment Performance Standards) verifier, we get to see lots of presentations. Some firms are “lean and mean,” and only show what’s required; others toss in all kinds of verbiage which isn’t necessary.

Example: including how you calculate your returns. Why? Does your prospect really want to know this? If they do, they’ll ask for it (recall that you have to let them know that they have that right). So why take up space with this information?

Example: telling us what you don’t do. For example, “we don’t have carve outs,” or “we don’t invest in non-US securities, so aren’t subject to withholding taxes.” Negative statements aren’t required.

One advantage to tossing everything in is that individuals are less likely to read the presentation (who, for example, ever reads a mutual fund prospectus in its entirety?). But, this isn’t what you’re supposed to do, right? You should want your prospects to read what you give them, so rather than confuse with lots of details which aren’t needed, I say provide the minimum information that truly has value to the recipients.

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