21 October 2011
Yesterday, at their annual conference in Manchester, the NAPF announced the publication of their new ‘made simple’ guide on performance measurement, attribution and risk. This looks to be a really positive development for trustee understanding : I have to caveat slightly as I haven’t yet read the guide.
Risk and performance are now inextricably linked in our minds but the area of performance attribution is often not yet paid as much attention as it deserves. It provides a lot of analytical detail into how and why performance was achieved and lost at both the asset allocation and individual mandate level and, in my view, is far too useful to be left for the internal management of investment managers.