Introduction to Performance Measurement

In addition to your class tuition and study materials, you will receive the following:


Exercises

• Return Calculation Exercise
• Customised benchmark exercise
• Be a portfolio manager attribution exercise

Other Extras

• Certificate of attendance

Level: Introductory


Synopsis:
An introductory level course exploring the fundamentals of performance measurement, and its key role in asset management firms, with a particular focus on the importance of performance attribution.


At the end of the course participants will be able to: Interpret an attribution report . Understand the basics of performance attribution . Know the attributes of a good benchmark . Calculate customised benchmarks . Understand the impact of large cashflows on performance returns . Calculate performance returns . Know the difference between money and time-weighted returns .


Prerequisites:
None


Suitable For:
Anybody in an asset management firm or pension fund wanting a good understanding of performance measurement


Introduction

• What is performance measurement?
• Basic calculations
• Currency effect
• Time weighted or money weighted?
• Practical exercise

Benchmarks

• Attributes of good benchmarks
• Peer groups or indexes
• Index calculations
• Excess returns
• Geometric or arithmetic
• Performance fees

Basic attribution

• Attribution as a management tool
• The Brinson Models
• Geometric attribution

Performance standards

• Background
• Detail
• Why do it?
• Verification
• Future governance
• Practical exercises