In this article Dan discusses the often large discrepancies between time weighted returns and money weighted returns and how this can lead to misleading reported performance results for investors. Money in your account is what really matters to investors and therefore cash flows should be a consideration. Advisers should focus on ensuring clients are tracking to their goals and objectives rather than focusing on performance numbers that more often than not ignore cash flows.
- Portfolio Insights June 2017 – It’s time to include risk measures alongside super investment returns
- Portfolio Insights April 2019 – Why nothing has changed since the global financial crisis
- Portfolio Insights March 2019 – Money Weighted Returns
- Portfolio Insights February 2019 – Product Suitability
- Portfolio Insights January 19 – Value of strategic advice