Philip Murphy

Vice President, North American Equity Indices
S&P Dow Jones Indices
Biography

Philip Murphy is Vice President at S&P Dow Jones Indices, responsible for North American equity benchmarks. He has over twenty years of experience in the financial services industry. Prior to his current role, Philip worked in the S&P Dow Jones Indices Channel Management group, where he focused on the defined contribution retirement plan market. Previously, he was an analyst in the Global Research & Design group.

He is a CFA Charterholder and a member of the New York Society of Security Analysts. He received his undergraduate degree from Queens College of The City University of New York and a master’s in economics from Fordham University.

Author Archives: Philip Murphy

Security Selection & Sector Allocation Effects of Equal Weighting the S&P 500®

Constituents of the S&P 500 Equal Weight (EW) and S&P 500 are identical, but the EW version is rebalanced quarterly so that every company has equal representation after the rebalance.  That often results in significantly different performance between the two indices, because equal weighting gives more representation to smaller stocks and alters the distribution of Read more […]

Try a TIPS Mixer in Your Equities Cocktail

As product manager of the S&P STRIDE Indices, I sometimes find myself extolling the virtues of Treasury Inflation-Protected Securities (TIPS), which I believe are an underappreciated asset class.  When inflation is relatively tame, people often ask why they should think about TIPS.  The answer is that TIPS don’t hedge expected inflation—that’s already priced in.  TIPS Read more […]

Minimizing the Pain of Regret

There are many extraordinarily talented minds engineering optimal portfolios, objectives of which include maximizing return per unit of risk, among others.  The capital asset pricing model (CAPM) posited the market portfolio as optimal in the mean/variance sense, but over the years, this notion has been questioned.  CAPM, like the efficient markets hypothesis (EMH), will likely Read more […]

The Little Engine That Could

Since the U.S. presidential election, headlines touting small-cap performance have almost invariably cited the Russell 2000.  As impressive as that index’s return has been, S&P DJI has a little engine that persistently wins the small-cap race—the S&P SmallCap 600®.  Outperformance of the S&P SmallCap 600 versus the Russell 2000 primarily has to do with two Read more […]

Benchmarking Retirement Withdrawal Strategies

Capital market benchmarks are, of course, widely used yardsticks of investment performance. For the production of the S&P STRIDE Index, in addition to providing performance data we also calculate hypothetical retirement income for vintages of the index that are at, or past, their target date. Hypothetical retirement income is expressed in index points, and can Read more […]

The Price of Retirement

In my last post, I discussed variability in cost and affordability of retirement income.  I used some data from S&P STRIDE, our new benchmark that provides a cradle-to-grave yardstick for wealth accumulation and income generation.  This week, I will look a little closer at how we measure retirement income, as well as its present value Read more […]

What Is Your Retirement Number?

Wealth drawdowns and volatility of returns are not the only risks facing defined contribution (DC) retirement plan participants.  Those relying primarily on 401(k)s and other DC plans for retirement income also need to address longevity, inflation, and variability in the price of income.  Furthermore, many traditional guidelines for withdrawal policies are simply insufficient for real-life Read more […]

P/E Ratios: Friend or Foe?

In a recent Financial Times column[1], Miles Johnson cautioned readers not to rely too heavily on index p/e ratios to gauge buying opportunities in the market. I wholeheartedly agree that investors should avoid over-reliance upon any single metric, but it is important to consider how p/e ratios are calculated, what their limitations are, and what Read more […]

How Benchmark Selection Can Support a Retirement Plan’s IPS

Sponsors of 401(k) plans sometimes do not approach the selection of capital market benchmarks as if it has a significant role to play in the implementation of their investment policy statements (IPSs).  They may leave benchmark selection to investment managers, consultants, or service providers, but in so doing they may be missing an opportunity to Read more […]

The Power of a Consensus Glide Path

Some who follow target date fund (TDF) performance have taken note that lately, the S&P Target Date Index Series has outperformed many TDFs.  In most historical periods, index performance was middle of the pack.  However, 2015 was an exception, as shown in Report 2 of our Year-End 2015 Target Date Scorecard.  Every vintage of the Read more […]