Evaluating investment performance of a portfolio managed by an investment manager

Abstract

Portfolio evaluation has changed significantly over time. Prior to the mid-1960s, evaluation was not a major issue. usually a valuation of assets which could be compared with a similar valuation at an earlier date was sufficient. Since then the market became highly competitive and performance results have stared to play a very important part in the asset management field. Consequently, a more rigorous approach to the issue of investment performance measurement was applied. The ongoing process of systematic, consistent data collection and compilation, together with an introduction of recognised international standards for presenting investment performance, allowed to make proper comparisons between the players competing in the field of investment management services. In the light of all the developments in the area of investment performance measurement, the dissertation discussed the critical issues involved in the evaluation of portfolio performance and looked at the practical application of theoretical aspects.