Mutual fund selection & assessment

Content
Background to Mutual Funds
-Review of fund jargon and pricing process. Different fund structures reviewed.
-Types of fund reviewed including hedge fund varieties.
-Market locations and sizes. Market developments and trends.


Performance Measurement
-Total Returns and Annualised returns. Converting one to another.
-Time weighted v Money weighted returns.
-Interpreting the basic figures: Gross v Net of charges, Pricing basis, Survivor bias etc.
-Volatility measures. Peer Group Analysis: Selecting the peer group.
-Benchmark selection and comparison. Customised benchmark.
-Use of positive and negative months, drawdown and their significance.
-Fund correlation to a market. R squared explained.


Risk Adjusted Returns and Advanced Performance Measures
-Selecting a risk free rate. Risk adjusted performance.
-Technical Analysis ratios.
-Sharpe and Sortino Measures. Treynor and Jensen Measures.
-Correlation measures. Why low correlation is not necessarily low risk. How correlation can vary with style.
-Information Ratio. Tracking Error. Value at Risk (VaR). Measuring its use.
-Risk adjusted performance examples.
-Snake trails, benchmark line and risk return history.
-Examples and Exercises.


Fund Manager Selection and Exercises
Criteria in fund selection reviewed: client requirements, risk tolerance, time horizon, asset allocation etc. Bar bell approach.





Todays Date: 8 September 2017
Duration 1 day