PeerTrac
 



What is Effective Benchmarking?



Effective benchmarking provides sufficient information to determine when corrective action is necessary.

Indexes are valuable components of the benchmarking process, but by themselves are not sufficient. Simple index comparisons lack the context required to draw meaningful conclusions.

Because indexes provide only a single comparative data point for each time period, it takes decades* to determine with any statistical meaning whether or not an investment manager has positive or negative skill. So by the time you have enough data to reach a conclusion, it's far too late.

Put another way, when your manager underperforms his benchmark index, you cannot know whether or not that degree of underperformance is enough to justify taking action.

Peer universes compliment indexes by providing vital additional context.

Imagine hearing that your child scored 650 out of 800 on the SAT. Is that good news or bad? Without the additional context of SAT percentile rankings (not to mention the scores of admitted students for your child's school of choice) you cannot begin to assess your child's results.

Benchmarking against indexes provides the raw score. Adding peer universes provides the context necessary to interpret that score.

* Please ask us for details


Fact:

95% of companies were able to make meaningful adjustments to their investment strategy after our in-depth review of the PeerTrac analysis.

 

Please visit our website to learn how your company can benefit from our analysis or call 1-925-256-0263.

   

Issue Sep 08'
 
 
 

 

95% of Peer Analytics clients made meaningful adjustments after discussing the PeerTrac analysis.

Examples:

1. The Insurance Company replaced their parent company's investment management with outside managers.

2. This Insurance Company restructured their equity style, bringing their aggregate equity style in line with that of their peer composite, and significantly changed their fixed-income manager guidelines.

3. Another insurance company revisited their portfolio asset allocation and ultimately made substantive changes.

4. Yet another company added a complimentary style equity manager

 

 

 

 

 
   
 
 
To unsubscribe to this mailing reply and place remove in the subject line

Peer Analytics | 296 Tamarisk Drive, Walnut Creek | California 94598 | 925-256-0263
Copyright © 2008 Peer Analytics - . All rights reserved.