This is a comprehensive, hands-on business introduction to the concepts and application of Investment Performance Reporting, Equity Attribution and Ex-Post Risk. Although it includes brief coverage of Fixed Interest Attribution, Multi-Currency Attribution and Ex-Ante Risk, each of these more complex applications is given separate, dedicated one-day coverage in other workshops.
The workshop includes numerous case studies which work from raw data. It also includes coverage of the data management implications of Performance and Attribution implementations.
By attending this workshop you will gain an understanding of Performance, Attribution and Risk to allow you to follow through from Portfolio Valuation to Performance Report. In addition, you will be able to take the applications forward to ‘get to the next stage’ performance analysis, client reporting and user problem solving.
Participation in this workshop requires a Laptop with Excel 2003 or a later version. We can provide a laptop if requested for an additional fee.
Pre-arrival requirements. It is assumed that prospective attendees will have:
- a reasonable understanding of securities processing and client reporting, valuation reporting especially
- average competency with MS Excel (2003 version as a minimum).
Investment Performance, Attribution and Risk are complex topics. Each includes concepts distinct from, for example, Investment Reporting, Accounting or Fund Pricing. Accordingly, a simple spreadsheet as a guide is made available for prospective attendees pre-workshop to attempt and gain initial familiarity with key concepts.
What will you learn
By the end of the course you will be able to:
- Calculate returns and use key metrics
- Understand the benchmarks and indices and use them to measure performance
- Calculate and measure risk
- Track errors in performance
- Apply portfolio attribution
- Understand and apply Global Investment Performance Standards
- Present performance results and prepare reports
Course Content
- Performance Returns
- Annualised vs Cumulative Returns
- Impact of Fees
- Currency impact
- Benchmarking
- Contribution Analysis
- GIPS
- Performance Attribution
- Equity Attribution - ‘Top Down’, Single Period
- Equity Attribution - ‘Bottom Up’ Alternative, Single Period
- Introduction to Multi-Currency Attribution
- Ex-Post and Ex-Ante Risk
- Statistical Concepts
- Ex-Post - Key Absolute Measures
- Ex-Post - Key Relative Measures
Speakers
Paul has over 25 years asset management industry business consultancy and professional training experience. This has encompassed all three of the traditional ‘Offices’ – Front, Middle and Back/Investment Accounting – so he has a unique understanding of the inter-Office dependencies and data flows.
In recent years he has focused on the Middle Office and out of this has produced a set of comprehensive Training Workshops which cover the business requirements of Investment Performance, Equity/Fixed Interest Attribution and Ex-Post/Ex-Ante Risk. The modules embody a unique training approach, refined through his experience of working with users, operations, development and technical staff at all levels over the years. This approach includes the use of case studies which start from ‘real, raw’ market data, practical systems’ tips and a sympathetic view of audience needs/pre-requisite experience in these potentially complex application areas.
Paul’s cross-industry consultancy and training experience has encompassed more than a dozen major hands-on implementation projects involving organisations both large and small – such as BNP Paribas Securities Services, Swiss Re, AIMCo, Riyad and NCB Banks and AXA Wealth. He has designed and rolled out, across 6 of the 7 continents, a Middle Office Product Training Programme for a Global Software House involving both physical and virtual classrooms as delivery mediums.
Who Should Attend
This Investment Performance Measurement, Attribution and Risk course should be attended by professionals who need to understand and calculate financial performance from the following types of institutions and departments:
- Operations Staff
- Staff wishing to move into Performance Analyst roles
- Database Managers
- Fund Managers
- ‘Sell Side’ Supplier staff requiring a better knowledge of users’ Performance requirements
- Portfolio Management
- Investment Management
- Equity Sales & Research
- Pension Funds
- Insurance
- Institutional Investors
- Banking
