My colleague, Jennifer Barnette, CIPM, suggested that this blog post from many years ago be published again. I was flattered that she felt it was worthy of reappearing. She was also kind enough to do some edits. It has been quite some time since I’ve done a blog post. This delay is attributable to a […]
Read MoreOne of those confusing things in the world of performance measurement: Modified Dietz Modified Dietz is one of the most commonly used return measures. Granted, Peter Dietz probably never referred to it as “Modified” (he called it “Day-Weighted,” as opposed to “Mid-Point Weighted”), but that’s the term we all know. Most investment firms used it […]
Read MoreIn this weekend’s WSJ there’s an article on companies that are encouraging their employees to get tattoos: Nice Tattoo! I Didn’t Know You Worked at Walmart. I would love to see Patrick, Chris, and Douglas, or John, Ashley and Linda adorn their bodies with The Spaulding Group’s logo [I might even give them a bonus to have it done!]. My […]
Read MoreThis is the time of year when many pension funds report their returns for the prior fiscal year. And often, the reported returns were calculated using a time-weighted method. But, is this appropriate? Or, perhaps, is more needed? In my way of thinking, pension funds, as well as other asset owners, should have two targets, […]
Read MoreSometimes, the labels don’t matter We just finished PMAR Europe 2017, an event that we felt was a huge success. And, as I often do, I made an attempt to interject a bit of humor from time-to-time. In one case, the “spark” behind it was one of the tea selections that was available: it was labeled […]
Read MoreThe revised GIPS for Asset Owners guidance statement hasn’t yet been finalized, but we can pretty much expect that the time-weighted composite return requirement will remain. At a recent NYSSA (New York Society of Security Analysts) GIPS program, that I had the pleasure to speak at, I asked what might be considered an unfair or trick question: […]
Read MoreOn the first day of this long July 4th weekend, I’m reading a book that is quite timely, which just came in: “Towards an Imperfect Union,” by Dalibor Rohac. It’s excellent, simply excellent, and I’m learning a great deal. The author includes the following: “The role of EU membership in facilitating pro-market reforms in postcommunist […]
Read More
In my last post, I covered a “fast” way to solve multiple choice internal rate of return exercises. In today’s post, I look at a second quick method. Recall the details from the last post: Account market value on 3/31 is $56.3 million Account market value on 4/11 is $58.2 million (prior to contribution on […]
Read More
I have covered the steps to calculating internal rate of return in a few different posts on the blog, including here, here and here. I have also covered the steps to use the cash flow worksheets of the TI BA II Plus and the HP 12 C. You may have read the curriculum and the […]
Read More
A CIPM Principles candidate sent an email asking how to calculate the internal rate of return in the exercise shown in Exercise 36 in the CIPM Principles Curriculum (on page 234). In this example, the following information is given: Account market value on 1/1/10 is $237,000 Dividends of $8,000 are paid on 7/1/10. These dividends […]
Read More