Performance tracking refers to the measurement, analysis, interpretation, and assessment of investment results. In particular, performance tracking provides information about the return and risk of investment portfolios over specified periods. Performance tracking, because of its function in monitoring portfolios, is an integral part of investment strategies.
Choosing investments is just the beginning of your work as an investor. You’ll need to monitor the performance of these investments to see how they are working together in your portfolio to help you progress toward your goals. If your investments are not showing any gains or your account value is slipping, you’ll have to determine why, and decide on your next move. In addition, you’ll want to be alert to opportunities to improve your portfolio’s performance because investment markets change all the time, perhaps by diversifying into a different sector of the economy or allocating part of your portfolio to international investments.
By providing accurate data and analysis on investment decisions and their consequences, performance tracking allows investment managers to take corrective measures to improve investment decision-making and management processes. Performance tracking information helps in understanding and controlling investment risk and should, therefore, lead to improved risk management.
An effective performance tracking process facilitates the following outcomes. It prompts attention to potential performance issues and unintended business or investment risks. It is also an effective monitoring of risk and return in relation to the investor’s objectives and the designated benchmark.
Cedrus Investments is founded and led by Rani Jarkas, a seasoned investment professional who has held senior-level positions at some of the world’s largest investment firms and has decades of international experience in all aspects of capital markets. The firm is strategically headquartered in Hong Kong, with offices in Shanghai, Beijing, Shenzhen, Jakarta and New York.