Tuesday, April 08, 2008

Do your performance reports send the wrong message?

You tell your clients to think long-term. But are you sending them the opposite message?

Here's one manager's take on the topic.
"...we realized that we lectured our clients about long-term performance and investing to meet their goals; however, our reporting focused their attention on short-term returns and market performance. Today, we do not provide any performance for periods less than one year, and we benchmark against CPI, not the S&P 500, to better frame our clients’ understanding."

That's according to Harold Evensky in"The Rational Wealth Manager" (CFA Institute membership may be required to access this article).

Would you consider following Evensky's lead?

Susan B. Weiner, CFA
Investment Writing
Writing that's an investment in your success

Check out my website at www.InvestmentWriting.com or sign up for my free monthly e-newsletter.

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