ETFs as benchmarks: is it time? A topic that continues to gain attention is the massive increases that have occurred with market indexes. We regularly hear stories of firms being required to pay multiples of what they had been for some of the major ones. Despite the evidence that less expensive equivalents are just as good,* […]
Read More ETFFor some time I’ve grown tired of seeing the seven (now eight) benchmark criteria credited to Bailey, Richards & Tierney (2007. “Evaluating Portfolio Performance”). I first learned of them when I took the then CGIPS now CIPM(r) Principles Exam, roughly 11 years ago: Unambiguous Investable Measurable Appropriate Reflective of current investment opinions Specified in advance Owned These are considered […]
Read MoreThe Spaulding Group has been at the forefront in providing education, information, and research, as well as fostering interaction regarding the high market index costs many firms and institutions are experiencing. We’ve moderated panel discussions, participated in and published a research study in The Journal of Performance Measurement®, addressed the topic in blog posts and our […]
Read MoreToo many in our industry are unaware of the increases in benchmark costs. The Spaulding Group is committed to promoting market index cost transparency, in order to shed increased light on this topic. For some time now, The Spaulding Group has been working with three leading custodians (BNY Mellon, Northern Trust, and State Street) to […]
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Note that the title of this post includes “market index,” not “benchmark.” The reason? Benchmark can mean more than market indexes; for example, it includes absolute benchmarks, such as LIBOR or LIBOR + 1. These ARE appropriate for hedge funds, since hedge funds are typically absolute managers, that DO NOT MANAGE against any particular market index. […]
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