Impact Investing

Portfolio risk analysis should not stop at Tracking Error Despite recent trends to incorporate deeper risk understanding in the management of portfolios, the degree to which risk is actually viewed all too frequently comes down to little more than compliance adherence and tracking error recognition. In this paper we aim to demonstrate that this approach to portfolio risk management is a far from optimal.

Performance Attribution - Not All that Glitters is Gold The most common measure of a portfolio manager’s skill is the track record of the portfolio. The nature of the financial markets and the volatility they “enjoy” means that luck plays a significant role in short (and even medium) term performance. In this paper we look behind the top-line performance numbers to investigate whether the returns are reflective of the manager’s actual skill and may, therefore, provide confidence of forthcoming outperformance.