ABSTRACT

This chapter considers how the new investing paradigm should and may well usher in reconsideration of how we track investments. Performance tracking for investment portfolios — showing absolute and relative total return to benchmarks or peers — dates from the 1960s and 1970s, as benchmarks, portfolio information technology, and style investing came to the fore. As the cash nexus returns to investments, it behooves investors to understand how “performance” is measured and presented. This chapter reviews current practices and suggests a few potential behavioral and actual measurement "nudges."