Course description
This training course is designed to provide finance professionals with a comprehensive understanding of how to evaluate and interpret investment performance effectively.
Covering the essentials of what performance measurement is, why it’s important, and how it’s conducted, the programme delves into methodologies for calculating both money and time-weighted returns, including simple returns, Modified Dietz, and Internal Rate of Return.
Participants will explore the practicalities of using excess returns, the advantages and drawbacks of customised indexes, and the insights gained from peer group comparisons and Portfolio Opportunity Distributions. The course also addresses the significance of attribution analysis in breaking down portfolio components to assess the impact of stock selection and asset allocation on total returns.
With a global perspective, participants are introduced to the Global Investment Performance Standards, emphasising the importance of risk-adjusted performance measures such as the Sharpe and Sortino ratios, and Value at Risk. Advanced topics include multi-currency and fixed income attribution, alongside the challenges and solutions in performance attribution.
Upcoming start dates
Outcome / Qualification etc.
- Understand the fundamental concepts of performance measurement, including the purpose, process, and importance of accurately measuring investment performance.
- Master the calculation and application of both money and time-weighted returns, familiarising oneself with methods such as the Modified Dietz, Internal Rate of Return, and true-time weighted returns, including the consideration of large cashflows and annualisation of returns.
- Gain proficiency in the use of excess returns, learning calculation methods, the advantages and disadvantages of various approaches, the creation and use of customized indexes, and understanding the dynamics of portfolio opportunity distributions.
- Develop insights into the advantages and challenges of using peer groups for performance comparison, including understanding medians, percentile ranks, and the relevance of portfolio opportunity distribution in evaluating investment strategies.
- Acquire a deep understanding of attribution analysis, including the ability to dissect a portfolio into its constituent elements to analyse and interpret the contributions of stock selection, asset allocation to total return, and familiarisation with methodologies like the Brinson Method.
- Explore the global standards and principles of performance measurement, such as the Global Investment Performance Standards (GIPS), and delve into risk-adjusted performance measurement, understanding common risk measures, and the calculation and implications of ratios like Sharpe, Treynor, and Sortino, as well as advanced attribution techniques for multi-currency and fixed income investments.
Training Course Content
- Introduction to performance measurement
- Assessing returns: time vs. money perspective
- Implementing excess returns: a practical guide
- Evaluating peer groups
- Concepts in excess returns
- The significance of attribution analysis in measurement accuracy
- Harmonising global presentation standards
- Measuring performance with risk adjustment
- Advanced attribution techniques
Course delivery details
All courses can be delivered ONSITE, ONLINE or BLENDED to suit your distinct requirements.
Whether one-to-one or group deliveries, entry level or boardroom executives, are consultants are here to develop a programme to meet your specific business needs.
Simply contact us to discuss your requirements.