When you use IR to measure skill, it makes sense to do it on a gross basis. (You can't do that on PV. I know.) Managers can't control their fees, especially in MF complexes. Tracking error is the same with or without fees, so a net IR penalizes skill. I once sub-advised funds with >2% fees. An IR of 0.5 with a 4% TE would match the index, making skill, if any, look like breaking even.
When you use IR to measure skill, it makes sense to do it on a gross basis. (You can't do that on PV. I know.) Managers can't control their fees, especially in MF complexes. Tracking error is the same with or without fees, so a net IR penalizes skill. I once sub-advised funds with >2% fees. An IR of 0.5 with a 4% TE would match the index, making skill, if any, look like breaking even.
Wow Kris, have a wonderful time in Vietnam!