Skip to main content

Equity

 
  |   KWAP Personnel Login Blue Color Orange Color Reset Decrease Font Size Reset Font Size Increase Font Size Select a text and click here for speech
English
Home
About KWAP
Corporate
Contributions
Investments
Risk Management
Business Performance
Interactive
English > Investments > Equity > Pages > Performance.aspx  

Performance

 

As we aspire to become a high performance organization, we always try to make it a habit of paying close attention to performance numbers. We track a diverse set of performance metrics to measure how well did we do in equities. We place a great emphasis on two performance indicators; Return on Investment (ROI) measures our realized return over average fund invested while Total Return, as measured by Time Weighted Rate of Return (TWRR) keeps track on portfolio’s total return inclusive of realized and unrealised gain. By measuring Total Return, we are able to evaluate the performance of the portfolio against selected benchmarks. Other performance metrics would include portfolio dividend yield relative to benchmark yield, portfolio beta, sharpe ratio, information ratio and tracking error. We begin tracking these more advanced performance metrics since 2009. This serves as a guide for portfolio managers to identify factors causing their outperformance/underperformance.

Historical Performance

<Click to see our Historical ROI since inception>

Performance Metrics for Equity

Basic Performance Metrics Active Management Metrics
ROI
  • Measures realized gain over average fund invested.
Total Return
  • Captures both investment income and unrealized capital gains
Standard
  • Measures riskiness of returns.
  • Enables estimation of risk-adjusted return.
Sharpe
  • Measures excess return over risk free per unit of risk.
  • Enables overall portfolio appraisal
Active return
  • Return over benchmark.
  • Captures positive or negative effect of active management.
Active Risk / Tracking Error
  • Measures risk of active returns
Information Ratio
  • Measures excess return over benchmark per unit of active risk.
  • Enables TAA and manager appraisal.
Asset-Class Specific Metrics
Beta
  • Measures sensitivity of equity portfolio return to market movements.
  • Captures positive or negative effect of active management.