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dc.contributor.authorBianchi, Robert
dc.contributor.authorDrew, Michael
dc.contributor.authorD. Evans, Michael
dc.contributor.authorWalk, Adam
dc.contributor.editorKevin Davis
dc.date.accessioned2017-05-03T11:31:17Z
dc.date.available2017-05-03T11:31:17Z
dc.date.issued2014
dc.date.modified2014-10-07T23:46:08Z
dc.identifier.issn03135934
dc.identifier.urihttp://hdl.handle.net/10072/63395
dc.description.abstractInvestment concepts are generally taught, learnt and spoken about amongst professionals in time-weighted terms. According to this view of the world, returns are the sole determinant of performance and risk, and a given return has an identical impact no matter its timing. While appropriate in certain circumstances, time-weighted returns (TWRs), and the performance and risk measures derived from them, provide an incomplete picture when evaluating certain practical financial problems, like retirement investing. For example, we know that other variables - including current member balance, contribution rate, age, targeted retirement date and objective - are important factors in determining investment outcomes. This paper discusses the distinction between TWRs and more comprehensive measures, and employs a range of performance and risk measures from each category in comparing a number of extant investment strategies. We find that time-weighted measures overlook important aspects of retirement investing, whereas wealth-denominated, target-relative measures more accurately capture the dynamics of retirement investing. Thus we see the two faces of investment performance and risk. The paper concludes by discussing how these two classes of measures might be incorporated into investment governance at superannuation funds.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent207739 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherFinancial Services Institute of Australasia (Finsia)
dc.publisher.placeAustralia
dc.publisher.urihttps://www.finsia.com/news-hub/ajaf
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom6
dc.relation.ispartofpageto12
dc.relation.ispartofissue1
dc.relation.ispartofjournalJassa: The finsia journal of applied finance
dc.relation.ispartofvolume2014
dc.rights.retentionN
dc.subject.fieldofresearchAccounting, auditing and accountability
dc.subject.fieldofresearchBanking, finance and investment
dc.subject.fieldofresearchFinance
dc.subject.fieldofresearchcode3501
dc.subject.fieldofresearchcode3502
dc.subject.fieldofresearchcode350202
dc.titleThe Two Faces of Investment Performance and Risk
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© 2014 JASSA and the Authors. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.hasfulltextFull Text
gro.griffith.authorBianchi, Robert
gro.griffith.authorDrew, Michael E.


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