How Does the Buy Side Measure Performance and Attribution?

Traders Magazine Online News, April 12, 2017

John D'Antona Jr.

In a new report, “Asset Management Performance Analysis and Attribution,” Celent’s Jay Wolstenholme, discusses the buy-side’s performance analysis and attribution methodology.

The report answers the following questions:

1.            What are the main performance attribution trends in asset management?

2.            What are performance analysis systems trying to solve?

3.            What are the key functional areas for performance attribution systems in asset management? 

Key findings include:

•             In today’s competitive landscape asset managers must not only have a superior investment strategy and performance track record but also constantly communicate it to existing clients and utilize it in marketing campaigns.

•             Equity attribution variables continue to expand as asset managers are developing new types of smart beta portfolios that blur the lines between passive and active investment styles. It is important to both asset managers and investors to be able to assess the performance components all detailed factors to ensure that performance Alpha is being achieved through the adjusted weighting of factors versus just luck or chance.

•             Performance analysis tools have always been part of the investment process but today more sophisticated, quantitative, cross product GIPs compliant tools are available from vendors meeting the new demands of asset managers.

To access the full report, please click here

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• Technology
• Buyside