All investors and money managers know that investing has risks. A primary aspect of investing is managing investment performance risk and doing so in the context of one’s return objectives. This presentation examines investment performance risk from the perspective of the investor and from the perspective of the money manager.
nvestment performance risk is a multifaceted subject and it must be understood as to the causes of investment performance risk, the degree of risk present, the consistency of risk with an investor’s return objectives and the consequences of inappropriate or misunderstood levels of investment risk.
Why You Should Attend:
To gain an in depth understanding of investment performance risk and how to address it as an individual investor, investment management firm and in an investor/money manager relationship. Particular focus is given to the relationship of investors and their money manager and the attention that must be given to the portfolio components generating investment performance risk and to their management.
Portfolio management is becoming more and more complex. Breaking down, understanding and managing the elements that can generate investment performance risk is critical. An investment portfolio over its life is managed in many different economic and financial environments and the elements producing risk to a portfolio must be managed in the context of these varying environments. In addition, investors are frequently introduced to individual structured investments and hereto, an investor must be able to dissect and understand the risks of a standalone investment and correctly evaluate the risk/return profile of the investment.
Areas Covered in the Session :
Understanding Investment Risk
– Absolute risk
– Relative risk
Establishing performance benchmarks
Evaluating Investment performance risk from the perspective of:
– The investor
– The money manager
Establishing investor and money manager relationships
– Non discretionary
Causes of Investment performance risk
– Elements generating risk or significantly increasing risk
Consequences of investment performance risk
– To the investor
– To the money manager
Review of leverage
– Degree of leverage
– Creating leverage
Who Should Attend:
- Individual Investors/high net worth individuals
- Private bank organizations
- Investment management organizations
- Mutual fund board of trustees
- Risk managers/compliance managers/auditors in investment management and private bank organizations
- Securities regulators
- Universities and colleges with business and investment management curriculum in their degree programs