Investment Performance Evaluation

 

Investment performance measurements are not the same as investment performance evaluations.  A performance measurement is only the first part of performance evaluation and entails the relatively simple procedure of calculating returns.  On the other hand, a performance evaluation encompasses a wider perspective and places those investment returns in the context of the investment mandate, strategy, or objective.

The second part of performance evaluation is the investment performance attribution.  The performance attribution involves the comparison of an investment’s performance with that of a benchmark, followed by the quantification of the different-from-benchmark returns. We trace the source of investment performance back to the decisions of the investment manager and quantify the value added.

The third part of performance evaluation is investment performance appraisal.  Performance appraisal entails forming an opinion as to whether the investment result is due to investment management skills and if those skills are likely to continue.

At Greenwich Analytics, we walk through the steps of investment performance evaluation with you.  We evaluate investment results and risk characteristics in the context of your objectives.  Afterward, we help you select an investment manager whose investment strategies aligned with those objectives.

 

Phone: +1 (646) 818-9950 | Email

 

www.greenwichanalytics.com

Investment Performance Evaluation

 

Investment performance measurements are not the same as investment performance evaluations.  A performance measurement is only the first part of performance evaluation and entails the relatively simple procedure of calculating returns.  On the other hand, a performance evaluation encompasses a wider perspective and places those investment returns in the context of the investment mandate, strategy, or objective.

The second part of performance evaluation is the investment performance attribution.  The performance attribution involves the comparison of an investment’s performance with that of a benchmark, followed by the quantification of the different-from-benchmark returns. We trace the source of investment performance back to the decisions of the investment manager and quantify the value added.

The third part of performance evaluation is investment performance appraisal.  Performance appraisal entails forming an opinion as to whether the investment result is due to investment management skills and if those skills are likely to continue.

At Greenwich Analytics, we walk through the steps of investment performance evaluation with you.  We evaluate investment results and risk characteristics in the context of your objectives.  Afterward, we help you select an investment manager whose investment strategies aligned with those objectives.

 

Phone: +1 (646) 818-9950 | Email

 

www.greenwichanalytics.com