Sentences with phrase «benchmarks on a relative basis»

Funds invested in short - term and intermediate government and investment - grade corporate bonds significantly underperformed benchmarks on a relative basis last year.

Not exact matches

In a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark index.

Consider the example of a portfolio manager compensated based on annual investment performance relative to a benchmark.

Alfa also makes grand claims about the roll stability relative to competitors» crossovers and sedans, and while it might improve upon base models or previous generations they had on hand to benchmark, the bar is constantly changing and it would take a more direct comparison to agree that they have improved upon the new Audi Q5 or will measure up to the upcoming Volvo XC60.

Investments are chosen based on relative value without reference to qualitative content of the benchmark

Many metrics in current use (e.g. Sharpe Ratio, tracking error, information ratio) compare a unit of return to a unit of portfolio volatility, measured either on an absolute basis or relative to a benchmark.

«The yield on that same benchmark is now about 60 basis points higher — around 2.60 or so — and that's maybe looking a little more attractive relative to other investment opportunities.

But don't just make your decisions based on the recent year return; analyze past 3 to 10 years relative to the benchmark and check their consistency.

The expected value of a return is based on its volatility relative to the benchmark and the correlation to that index.

In delegating, the end investor does not mandate that the manager must evaluate securities based on the investor's utility maximization problem, and a natural alignment of the investor's and manager's interests is not present: managers are incentivized to outperform relative to a stated benchmark or to peers, rather than to operationalize the consumption model of the end investor.

In the February 2016 version of their paper entitled «The Harm in Selecting Funds that Have Recently Outperformed», Bradford Cornell, Jason Hsu and David Nanigian investigate future mutual fund performance based on recent past performance relative to stated benchmarks.