Philip Murphy

Index Committee Chair, Americas Index Governance
S&P Dow Jones Indices
Biography

Philip Murphy leads Index Governance for the Americas at S&P Dow Jones Indices (S&P DJI). In this role, he is responsible for oversight of all aspects of index determination, as well as administration of index committees, methodologies, and consultations.

Prior to his current role, Philip worked in S&P DJI’s Product Management group, and was responsible U.S. equity and global target date benchmarks, including the S&P 500®, S&P Target Date, and S&P STRIDE. Previously, he worked in S&P DJI’s Channel Management group, where he focused on the defined contribution retirement plan market, and as an analyst in the Global Research & Design group. He writes on a range of topics, and has over twenty years’ experience in financial markets.

Philip 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

Cost of Retirement Income Q3 2018 Update

Real U.S. interest rates have shifted upward YTD in 2018, with a larger shift on the short end than the long̬̬—producing a flatter curve. Exhibit 1 shows the real yield curve (from 5 to 30 years) at the end of each quarter since December 2017 and also includes data as of Oct. 9, 2018 to Read more […]

Developing Expectations for Long-Term U.S. Stock Returns

In this bull market, by some measures the longest running in U.S. history, investors may wonder what its prospects for continuation are. Judging by rolling quarterly 10-year annualized returns, the S&P 500® does not necessarily seem over-extended. As Exhibit 1 shows, since the end of World War II, large retracements followed lengthy periods of greater-than-10% Read more […]

Relative Performance Impacts From the Introduction of Communication Services

S&P Dow Jones Indices will reshuffle stocks in September to reflect the revised structure of the Global Industry Classification Standard (GICS®) in its indices. The move will see telecommunication services replaced by a new sector called communication services. Its constituents will transfer from telecommunication, information technology (IT), and consumer discretionary. Exhibit 1 shows affected S&P Read more […]

Trading in Facebook Shows Indexing Has Little to Do With Valuation-Based Dislocations

By the close of trading on Thursday, July 26, 2018, shares in Facebook (FB) traded down almost $99 billion, or 19% of their market value. Despite FB’s beginning weight of 2.16%, the S&P 500® was almost flat, losing 0.30% on the day. I suspect you will not hear much about this from those who attempt Read more […]

Monitoring Progress Toward an Income Goal

In a previous blog post, I described some benefits of having an income goal and a method of estimating one’s retirement income liability. I reviewed a hypothetical example to illustrate steps 1-2 from the list of benefits below, and I calculated a net estimated retirement liability (the portion of retirement income one must fund with Read more […]

The Benefits of Having a Retirement Income Goal and How to Estimate It

Individuals preparing for life after full-time employment may find that planning for a particular range of inflation-adjusted retirement income is more effective than planning for a particular range of wealth. Wealth levels are unintuitive because they do not provide practical spending guidelines. They are also heavily influenced by random variables (market returns). Using one’s wealth Read more […]

Do Dividends Really Pay? (Part 2)

Previously I discussed why preference for dividend-paying stocks may not have a strong theoretical footing, but could be grounded in behavioral and practical reasons. Furthermore, due to possible economic signaling generated by dividends, such strategies may be correlated with widely accepted factors like quality and value. This post demonstrates how specific dividend strategy indices may Read more […]

Do Dividends Really Pay?

What benefits do dividend payments and dividend yields convey? The answers may sometimes be overlooked as market participants seek equity income or the perceived safety of dividend strategies. In 1961, Merton Miller and Franco Modigliani (M&M) theorized that dividend policy is irrelevant to company value.[1] Of course theories are models of reality and require simplifying Read more […]

2017 Retirement Funding Update for DC Account Holders

2017 was generally kind to U.S. shareholders of domestic and international equities, but long-term U.S. Treasury Inflation-Protected Securities (TIPS) rates drifted downward, increasing the present value of future inflation-adjusted cash flows discounted to the TIPS curve. An important question for retirement savers may be whether investment returns outpaced the increased cost of securing future in-retirement Read more […]

Considering Tax Diversification Benefits of Roth Accounts May Be Timely

The S&P 500® was up 22.1% YTD as of Dec. 19, 2017 (including reinvested dividends), and international stocks were generally even more kind to USD investors (S&P Global Ex-U.S. BMI Gross Total Return [USD] was up 26.3% YTD). However, in most types of accounts we do not get to keep gross returns. Capital gains and Read more […]