Research Affiliates, the asset manager, sub-advisory service and general investment think tank, publishes a newsletter monthly which, more often than not, is quite thought-provoking. I’d write a summary of the March 2009 issue, but when I forwarded a copy to Jonathan Chevreau (author of The Wealthy Boomer, columnist for the National post, Twitter Profile: http://twitter.com/JonChevreau) earlier today he dissected it much better than I could. You can read Jonathan’s thoughts by clicking here.
One point that that I’ll add to Jon’s notes are that the eVestment Alliance returns are GROSS of management fees, but do adjust for survivorship bias – meaning that they include the returns of now “inactive” funds.
If you would like to read the actual RAFI Fundamentals newsletter, you may click here.
The title of my post today is a quote taken from the article which is attributed to John Maynard Keynes, and every time I hear it, it brings a smile to my face so I thought i would share it in turn with you.