FINC3017 : Topic-8-Performance-Evaluation
Document Summary
Traditional measures of performance: contemporary measures of performance, style and performance evaluation, performance persistence. The relevance of past performance to performance evaluation. Us: sawicki (2000) and frino, heaney and service (2005) found similar results for the. Australian market: some studies have shown that superannuation funds are less susceptible to this effect. There are limitations associated with using past performance to make assessments and comparisons between funds: evidence does not strongly support past performance as a reliable predictor of future performance. These models involve a direct comparison with a pre-selected benchmark portfolio, which is typically an index (eg s&p/asx200) Industry constructed benchmarks may be designed to match a specific type of investment strategy: there are certain indexes available which are comprised of stocks that follow a specific type of style (eg value/growth). These indexes are sometimes criticised for their subjective nature and changing composition.
