Standard practice in institutional investment is finding a Strategic Asset Allocation (SAA) in line with the risk/return preferences of all stakeholders. This SAA is the result of an Asset Liability Management study. The next step is to establish a process of allocating the means over various investment opportunities, carefully assessing and monitoring the marginal contribution to risk and return.
Monitoring calls for a sophisticated risk and control framework, including ex-post performance and risk management.
Evaluation of investment performance has gained considerable attention. Measuring and attributing performance reveals the contribution of each decision in the investment process to the overall performance and reveals which decisions consistently add value on a risk-adjusted basis. In other words, performance evaluation makes it possible to identify the strengths and weaknesses of the investment organisation; the first step in managing performance.
For this purpose we have developed PEARL, a performance evaluation solution. PEARL offers you the opportunity to evaluate the risk/return of each decision actually taken within your investment decision process.
You can also benefit from our experience in performance evaluation by hiring one of our consultants or by attending the ORTEC Academy training courses.