This course provides all attendees with a grounding in the tools and techniques used to calculate investment performance. Students will be taken through practical examples. The class is conducted over two full days. Students will walk away with a working knowledge of the concepts that define performance measurement. Please see agenda below training calendar.  The class typically runs from 8:30 am - 5:00 pm.

CFA Institute has approved this program, offered by The Spaulding Group, for 12 CE credit hours. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE tracking tool.

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PARTIAL AGENDA

BACKGROUND

• What is performance measurement?
• A brief history of performance.

RATES OF RETURN

• Time-weighting vs. Money-weighting.
• Internal Rate of Return.
• Mid-point and Modified Dietz.
• Unit Value Method.
• "True" Daily Returns.
• Geometric linking.
• Annualization.

BENCHMARKS

• Absolute, market indexes, peer groups, and custom benchmarks.
• Pros and cons.

RISK

• What is Risk?
• A review of the common measures, including standard deviation, Sharpe Ratio, Treynor Ratio, Information Ratio, Tracking Error, and VAR.
• Risk monitoring and management

ATTRIBUTION

• The Three Laws of Attribution.
• A review of the Brinson Hood Beebower and Brinson-Fachler models.
• Currency Attribution.
• Arithmetic vs. Geometric.
• Multi-period Attribution.
• Fixed Income Attribution.

PERFORMANCE PRESENTATION STANDARDS

• Detailed review of the Global Investment Performance (GIPS®) Standards.
• Composite construction.
• Calculations.
• Discretion.
• Points of confusion.

THE PERFORMANCE MEASUREMENT PROFESSIONAL/ THE PERFORMANCE MEASUREMENT ORGANIZATION

Staff / Organization characteristics / trends

In addition to receiving a student guide that contains the details of the class presentation, each student receives supporting reference material to take back with them, including:

• A complimentary copy of The Handbook of Investment Performance: A user's Guide, Second Edition by David Spaulding, CIPM (TSG Publishing, 2011)
• Performance Attribution and Risk Measurement Reference Guide, a handy pocket reference.
• A copy of the GIPS standards and because this is a hands on class, you'll receive a calculator too!

The Spaulding Group is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

Course Content:
This two-day course builds upon David Spaulding's popular book Measuring Investment Performance, (out-of-print) published by McGraw-Hill. (Students receive a complimentary copy of David's most recent book: The Handbook of Investment Performance).