Bridge over ocean
1 July 1966 Financial Analysts Journal Volume 22, Issue 4

Measuring Investment Performance: The Unit Approach

  1. John A. Sieff

This article describes a practical method of measuring investment performance which enables direct comparisons to be made between different funds and their fixed-income and common stock segments, regardless of differences in money flows. The author comments briefly on other approaches to measurement and is critical of attempts to express factors such as risk and timing in quantitative terms. Attention is drawn to the growing tendency to emphasize short term results and the dangers inherent in this where the investment management of retirement funds is concerned.

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