tag:blogger.com,1999:blog-2568941354104807757.post5023498608580112531..comments2023-10-05T09:07:24.225-04:00Comments on Investment Performance Guy: When is an account, not an account?Dave Spauldinghttp://www.blogger.com/profile/01777929408680234896noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2568941354104807757.post-46978989818154174472010-07-02T09:05:54.673-04:002010-07-02T09:05:54.673-04:00Steve, thanks for your affirmation!Steve, thanks for your affirmation!Dave Spauldinghttps://www.blogger.com/profile/01777929408680234896noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-66736423353781896262010-07-02T08:37:01.245-04:002010-07-02T08:37:01.245-04:00I think you are right to aggregate the individual ...I think you are right to aggregate the individual accounts. The question gets to "what is the strategy?" and you indicate that it is the TOTAL portfolio that is the strategy. It is widely accepted in modern portfolio theory that we must look at the ENTIRE portfolio and not simply at the individual pieces that make up the portfolio. It is not inconsistent for these pieces to be in their own separate "accounting" portfolios, but this is a matter of bookkeeping rather than economics. Separate accounts in each asset mandate are a good example of individual pieces that make up a whole investment portfolio. We might also consider that a household investment portfolio supports several goals, each with a different time horizon, risk tolerance and need for liquidity. These pieces are then aggregated to form the overall portfolio that fulfills on the true strategy. Your analysis shows how to bring the economics of the investment portfolio in line with the performance standards under GIPS.Stephen Campisi, CFAnoreply@blogger.com