WM ARCHIVE UPDATE

Today’s addition to the WM library is an interview with Ross Miller, a professor of finance at the State University of New York at Albany and president of Miller Risk Advisors. In our chat, he discusses his active expense ratio with your editor in the October issue of Wealth Manager. Miller designed the quantitative measure to shine a light on the true cost of active management. As he sees it, his gauge offers much improvement over the gross expense ratio that’s typically used for comparing costs among mutual funds. The metric’s details are outlined in his original working paper, “Active Expense Ratios and Active Alphas,” which is available via a link on his web site and is forthcoming in the Journal of Investment Management.