CFA Institute's Stephen Horan Connects The Dots Of Performance Reporting, The Future Of Finance, And How To Build A Successful RIA

Friday, March 21, 2014 17:27
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CFA Institute's Stephen Horan Connects The Dots Of Performance Reporting, The Future Of Finance, And  How To Build A Successful RIA

Stephen Horan, managing director and co-lead of education programming at CFA Institute, rocked the world of professional financial advisors at a webinar session just minutes ago. He nailed it. I strongly recommend viewing this session on replay.

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The CFA Institute is a powerful force in the professional financial advice business, and Horan was able to connect the dots linking performance reporting to marketing an RIA ethically using your investment track record.

Horan's simple explanation of time-weighted return (TWR) versus money-weighted return (MWR) crystallizes the important differences in the two methodologies. He explained how cash-flows coming in and out unevenly affect TWR and MWR differently. It actually makes sense to use MWR instead of TWR in reporting performance of private equity investments, Horan said. That's something I never heard before and it is likely to be the crux of many investor lawsuits in the 10 decade ahead.

I suspect the reason more people did not show up for live session was the NCAA Tournament in which Duke was upset by Mercer. (Who is Mercer?)

Again, I strongly recommend viewing this session on replay.

Horan received a 4.7 rating form attendees, and comments from attendees show deep feelings about Horan's message:

 

Comments:
Great job. It's nice to see the CFA Institute being proactive in the areas of educating the profession and the public on matters of trust, integrity & transparency.
 
Very informative
 
Very clearly presented and very useful, both for evaluating managers and understanding performance. Good support for fiduciaries!
 
Great stuff - want more - deeper dive into the numbers and calculations.
 
I thought the webinar was very informative!
 
I would have preferred to spend less time on performance measurement and more on manager selection.
 
Valuable information
 
I enjoyed it and was happy to see one devoted to this subject, which I do not think enough advisors pay attention to.
 
As Andy remarked at the very end, this was great stuff. Very informative and educational for those advisors who are interested in gaining knowledge. Good discussion and comparisons between TWR and IRR/MWR. Also very much liked the 6 categories being targeted by CFA in their "Future of Finance" campaign. Our firm has adopted CFA Institute Code of Ethics and today's webinar reminded me of why that is. These are very good people. Excellent presentation.
 

Excellent Information

 

 

 

 

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