Understanding & Demonstrating Performance >>>
Setting and meeting realistic performance expectations is becoming one of the defining factors in the choice of investment managers and is vital if organisations are to retain and attract clients.
Doing this effectively requires the ability to measure and analyse investment performance and understand where investment policy is succeeding or falling short of expectations. The Portfolio Manager Workstation provides a series of tools designed to help companies comply with international measurement standards and provide high calibre performance measurement reporting. An extra level of sophistication is provided in the form of performance attribution capabilities to further enable portfolio managers to evaluate and demonstrate their investment performance. As clients become more informed and their expectations higher, there is an increasing need to present returns, describe the investment policies used and to qualify the risks taken within those strategies.
Evaluating Investment Performance for Management and Clients >>>
Our Performance Attribution tools facilitate the comparison of performance returns between multiple business objects, such as portfolios, groups of portfolios, tactical or strategic allocations, indexes, etc. Designed to analyse how added value between portfolio and benchmark is generated, the Portfolio Manager Workstation measures the effectiveness of an organisation’s asset allocation, currency allocation and security selection strategies. These capabilities are particularly powerful in terms of enabling managers to better understand the impact of their investment decisions. These tools also allow investment management organisations to monitor and control the activities of their specialists.
Relative returns are critical to investment managers but it is also important to understand portfolios’ risk-return characteristics. As such, our Portfolio Manager Workstation is equipped with tools for calculating statistics such as the Sharpe Ratio, Ex Post Tracking Error, Jensen’s Alpha and the Information Ratio. Where used as an integral part of the investment management and reporting process, these analytics can provide valuable insight for financial organizations and their clients alike.
Performance Attribution capabilities can have significant impact on underlying investment processes, as they typically necessitate an improvement in data quality, stress tests, sensitivity analysis and communication between departments.
Our Portfolio Manager Workstation provides this comprehensive range of performance benchmarking and attribution functions on an integrated basis, removing the need to communicate with third party tools and the associated complexity in interfacing them.