Analyst Performance
ISFA provides performance reports either on a regular basis or on request. In addition a web tool is available that allows transmission of recommendations to ISFA either by manual entry, or by bulk upload.
ISFA aims to truly reflect the mandate of the analyst and accurately present the figures clients want to see.
ISFA allows for adjusting the performance measurement according to the specific analyst mandate in various ways. The most important choices include:
- Benchmark (stock index, specific universe, cash)
- Weighting function of the titles covered by the analyst
- Weighting of the titles in the analyst universe and the benchmark (equally, capital weighted)
- Rebalancing (no rebalancing, daily, weekly, monthly)
- FX-treatment (local currency, conversion, hedging)
Apart from calculating the excess returns and generated alpha, ISFA determines the information ratio, indicating the significance of the generated alpha. The information ratio, allows for a correct, risk-adjusted comparison of analysts covering different sectors.
The reports can be based on single analyst’s universe, economic sectors, regions or the whole institute, reflecting different observation periods.
