All investors and firms managing money or providing investment advice are subject to investment performance risk, which stems from the performance of an investment portfolio or investment product being substandard or perceived to be substandard. This is irrespective of whether an investor is managing one’s own investments or has delegated discretionary authority to an investment manager. This presentation begins by addressing the evaluation of investment performance risk from the perspective of an investor and that of an asset manager and how the consequences of substandard investment performance are different for the investor and for the asset manager.
Investment performance being substandard or being perceived as substandard can be the result of a variety of factors. An understanding of these factors that can negatively impact the performance of an investment portfolio or investment product is very crucial to analyze the risks. These negative impacts can be in terms of an absolute return objective or a relative return objective, which is the key to managing investment performance risk. There are various different types of investment manager/client relationships and this presentation reviews the nature of investment performance risk in the context of the different types of investment manager/client relationships.
An investment performance risk follows with an evaluation of the risk/return management thought process and then addresses a number of the primary causes of investment performance risk in a discretionary investor/investment manager relationship. With respect to leverage, while recognizing the potential value of leverage to portfolio management, it also recognizes leverage to be one of the more significant potential causes of performance risk. The presentation will provide a detailed review of leverage in terms of understanding its identification and the many means by which leverage can be introduced to a portfolio.
Continuing with a review of an investor/investment manager relationship, the presentation next provides a detailed examination of the conditions in a relationship that can contribute to investment performance risk. Lastly, the presentation concludes with an in-depth examinations of “best practices” to be employed, both by investor and the investment manager in establishing a client mandate, portfolio composition, performance benchmarks, use of leverage and guidelines as well as “best practices” that are specific to the investment manager with respect to portfolio management and administration considerations.
To provide an in-depth understanding of the investment performance risk and an examination that addresses:
How it may exist?
This webinar will provide valuable assistance to the following:
Robert Geary is the founder of Greenwich Risk Management Advisory Services "LLC" and services as the principal consultant on many of the firm's consultancy mandates. He has been a banking and finance industry professional for 43 years with 34 years serving in a variety of senior Treasury, financial market, asset management, and risk management roles at JP Morgan Chase & Co. For the last 6 years of his career with JP Morgan Chase, Robert had undertaken risk management oversight roles that have included Head of Market, Credit and Operational Risk Management for Chase Asset Management and being Managing Director of Fiduciary Risk Management for the Corporation.
During his career, Robert has served on the Board of Directors of Chase Manhattan Overseas Banking Corporation as well as having served on numerous senior committees. Prior to joining Chase, he held positions at Chemical Bank, Chrysler Financial Corporation and National Bank of North America.
Robert holds a BA degree in Economics from Pace University and did graduate studies in finance at New York University Graduate School of Business. He is a Past President of the New York Athletic Club and is currently a member of the Executive Advisory Board of St. John's University Department of Accounting and Taxation.