CFA Institute, the global association of investment management professionals, announces the results of the 2015 Graham and Dodd Awards, a program honoring the top articles published in the Financial Analysts Journal each year. “The Only Spending Rule Article You Will Ever Need” by M. Barton Waring and Laurence B. Siegel received the top award. The article appeared in the January/February 2015 issue, a special issue on retirement security that marked the 70th anniversary of the Journal. The article’s contribution is to use the annuity technique to determine the maximum income that retirees can withdraw each year without facing the risk of running out of money. The authors call their proposed spending rule an annually recalculated virtual annuity (ARVA). They explain and illustrate the mechanics of the ARVA, which allows retirees to recalculate each year how much they can spend based on their life expectancy and the current value of their retirement portfolio.
Barbara S. Petitt, CFA, managing editor of the Financial Analysts Journal, commented: “I am pleased that the Journal’s Advisory Council and Editorial Board chose to honor an article that plays a role in addressing the retirement crisis. Retirement security is one of the themes of the CFA Institute Future of Finance initiative, and the Financial Analysts Journal is well positioned not only to advance the knowledge and understanding of the challenges of achieving retirement security but also to offer practical solutions to these challenges. This article, which is written in language accessible to investors, should thus be valuable to them and their advisers.”
The Financial Analysts Journal’s Advisory Council and Editorial Board recognized the contribution of three other articles by awarding two Scroll Awards and a Best Perspectives award. The Scroll Awards were given to:
The Best Perspectives award was given to “The British Origins of the US Endowment Model” by David Chambers and Elroy Dimson (March/April 2015).
Readers of the Financial Analysts Journal also selected their favorite article of the year, “Low-Volatility Cycles: The Influence of Valuation and Momentum on Low-Volatility Portfolios” by Luis Garcia-Feijóo, CFA, CIPM, Lawrence Kochard, CFA, Rodney N. Sullivan, CFA and Peng Wang, CFA (May/June 2015). Dr. Kochard and Mr. Wang will receive the Readers’ Choice Award for the article; because of their editorial involvement with the Journal, Dr. Garcia-Feijóo and Mr. Sullivan were recused from the peer-review and acceptance processes and are ineligible to receive the award.
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