Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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March 1, 2002

Quantity Not Enough

By Gregory Bresiger

The Investment Counsel Association of America (ICAA) is skeptical of some of the best execution guidelines issued by the Association for Investment Management and Research (AIMR), a group which puts too much emphasis on quantifying results, according to the ICAA.

The Charlottesville, VA.-based IIMR guidelines contend that best execution means, "well-informed trade execution decisions made with the intention of maximizing the value of client portfolios under the particular circumstances of the time."

AIMR recommends that firms measure performance.

"It is important to measure information in ways that facilitate comparisons: From period to period; against appropriate objectives and benchmarks (e.g. peer universes); and by broker, trading venue, and trading method," AIMR states.