Our aspiration to become a high performance organisation, close monitoring of the financial performance is a habit. We track diverse set of performance metrics to measure the performance of equities. A great deal of emphasis is placed on two performance indicators being Return on Investment (ROI) which measures the realised return over average fund invested and Total Return, as measured by Time Weighted Rate of Return (TWRR), which tracks the portfolio's total return inclusive of the realised and unrealised gain. Total Returns measurement enables the evaluation of portfolio performance against selected benchmarks. Other performance metrics includes portfolio dividend yield relative to benchmark yield, portfolio beta, Sharpe ratio, information ratio and tracking error. This serves as guide for portfolio managers to identify factors affecting their performance.
|Basic Performance||Active Management||Asset-class Specific|
- Measures realised gain over average fund invested.
|Total Return |
- Captures both Investments income and unrealized capital gains.
- Adoption of FRS standards required.
|Standard Deviation |
- Measures riskiness of returns.
- Enables estimation of risk-adjusted returns.
|Sharpe Ratio |
- Measures excess return over risk-free per unit.
- Enable overall portfolio appraisal
|Active Return |
- Return over benchmark.
- Captures positive or negative effect of active management.
|Active risk/tracking error |
- Measure risk of active returns.
|Information ratio |
- Measure excess return over benchmark per unit of active risk.
- Enable TAA and manager appraisal.
- Measures sensitivity of equity portfolio returns to market movements