Friday, May 7, 2010
What to report
First, many vendors (and managers) report returns for periods for which no data exists: e.g., my account is only 3 years old but I get columns for 5 and 10 year returns ... why? In a case as described here, I would expect to see 1, 2, and 3 year returns, plus a "since inception" return which would cover the 3 1/2 year period (and 3 7/12, 3 8/ 12, etc. as we move forward). There's no need to show columns if there isn't data to load in. AND, it would be inappropriate to show 3 1/2 year return in a column labeled "5 years."
But are there "standards"? No, and perhaps this is a good thing, though we would like to see guidance provided, I'm sure.