What past delegates say?
“Very good. Excellent presentation and delivery”
Analysts, Raymond James Investment Services
“Very good, highly recommended.”
Former Delegate, Liontrust Asset Management
Investment Performance Measurement
This programme is only available on in-company basis. Please, contact us for more information
This practical two day training run by a former senior banker has been designed for anyone who needs to understand the fundamentals of measuring investment performance.
The course explores all aspects of performance measurement including the calculation of returns, impact of different benchmarks and adjusting performance for risk taken. Through the analysis of the best current industry practice you will learn how to set up, maintain and improve performance measurement systems within your organisation.
You will also have a chance to learn about the evolution of the asset and wealth management industries including the latest industry trends as well as some of the findings from behavioural finance.
What Will You Learn
By the end of the course you will be able to:
Main Topics Covered During This Training
Who Should Attend
Professionals who need to understand and calculate financial performance from the following types of institutions and departments:
In-Company, call us for more information
Delegates have to be from the same company and register at the same time in order to claim the discount.
Investment Performance Measurement and Attribution Analysis
Overview and course objectives
- Trends within the asset and wealth management industries
- Fragmentation of the “value chain”
- Separation of “alpha” and “beta”
- Relative and absolute returns
- The core / satellite approach
- Product commoditisation
- Rebuilding trust
- Quality of reporting
Case Study: Using behavioural finance to improve the manager/client relationship. The importance of the Investment Policy Statement and clear communication throughout the investment process
Calculation of returns and key measurement metrics
- Simple returns
- Money weighted returns
- Time weighted returns
- Annualised returns
- Before or after fees
- Currency impact
Case Study: Understanding the measurement methodologies available and when to use them
Comparison of returns against an appropriate benchmark
- How do you select / construct the “right” benchmark?
- What are the factors to consider?
- Is a suitable commercial benchmark / index available?
- An overview of types of benchmark/index
- Understanding key benchmark statistics
- What is the cost of investing in the index?
- Some limitations of indices
- Alternative approaches:
- Peer Group analysis
- Notional Funds
- Random portfolios
- Understanding “excess” (arithmetic and geometric) returns
- The impact of management and performance fees
- The key risk measures and when to use them:
- Ex post and ex ante
- Standard deviation
- Sharpe ratio
- Skewness and Kurtosis
- Return distributions
- Measuring downside risk
- Value at risk
- Understanding different perspectives of risk; the “manager” and the “investor” view
- Specific risk metrics for Fixed Income portfolios
Case Study: The importance of “information ratios” and how to use them
- What is performance attribution?
- Why is important to managers and investors?
- The relationship between performance and Asset allocation – the ongoing debate!
- Isolating the return from “active” management
- Some specific challenges:
- Multi currency
- Fixed income
- Selecting the measurement period and multi period attribution
GIPS Perfomance Measurement Standards
- GIPS objectives, characteristics and scope
- GIPS compliance standards
- Performance presentation standards
Our course director has over 20 years of international banking experience. His career began with Royal Bank of Canada where he spent 15 years in a variety of senior roles covering all aspects of the international wealth management business both onshore (London) and offshore (Bermuda). Over his career he has managed Investment Management, Banking and Trust operations.
Bill’s current portfolio of assignments relates to assisting clients in developing asset allocation strategies in a multi asset class environment, selecting managers and monitoring performance.
During his career Bill has had responsibility for designing and delivering financial education programmes for professional staff in the Middle East, Europe, USA, Canada, South America and Africa. Bill is currently developing and delivering training programmes for international banks, private banks, wealth and asset managers, family offices, professional bodies and regulators covering a broad range of financial, investment and soft skills subjects.
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