The T Standard
Helping investors understand portfolio performance during a transition
How can the T Standard help investors?
If a transition manager uses the T Standard, you can:
- View the results from your perspective, consistent with CFA Institute performance standards.
- Compare and evaluate proposals from potential transition managers.
- Analyze outcomes more effectively. If the T Standard is applied to your transitions consistently, you can also use the results to analyze and compare transition managers' track records.
Used industry-wide for almost a decade, the T Standard has been updated over the years to reflect feedback requested from plan sponsors, providers and consultants. Feedback after the initial launch of the T Standard indicated that few changes were needed. In response to industry input, we clarified ambiguities, expanded reach into uncovered areas, and improved the level of transparency.
The T Standard is...
- Portfolio performance measurement methodology for portfolios in transition.
- Time-weighted performance measurement consistent with the performance perspective of asset owners.
- A performance methodology that can be applied to any transition event.
The T Standard is not...
- A singular metric which can explain the reason for the performance outcome. Although the T Standard methodology will provide asset owners with the total performance outcomes, further attribution will be required to understand the factors that generated the outcome.
- Synonymous with the T Charter. The T Charter is a code of best practices for transition managers. However, the T Charter stipulates that the T Standard methodology should be applied to the performance evaluation.
Because we use the T Standard, you can count on the accuracy of our performance estimates and the actual results we report. We also use the T Ratio to give you a context for comparing transitions that differ in complexity.