Performance Measurement
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
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Performance Measurement pulls together data regarding the value of individual investments and portfolios of investments. This enables analysts to calculate the overall performance, highlight significant movements in value and benchmark the fund/investment portfolio against others. You may provide performance analysis and attribution analysis, including generating graphs and reports, for a variety of business types. Performance statistics are reported to investment managers for use in client relationship management. Performance measurement professionals work closely with corporate actions, global custody, valuations, fund managers and traders. They have to respond to internal requests from investment colleagues and also requests from clients.
Salary
Entry level positions start at approximately £18,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £50,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.
- Agreeing performance metrics against which funds/portfolios should be measured
- Gathering, calculating and analysing investment performance data
- Analysing of benchmark performance results against closest comparators
- Monitoring pricing and investment performance of individual and collective investments
- Monitoring market performance indicators
- Preparing total fund index returns
- Drawing appropriate comparisons between market indicators and investment performance
- Reporting to investment managers and external clients on investment performance, preparing reports and attribution graphs
- Preparing weekly/monthly Lipper Hindsight, Bloomberg and other reports, ensuring reports are completed in a timely and accurate way
- Assisting with the ongoing development of performance analysis reporting information
- Analytical and evaluation skills
- Accuracy and attention to detail
- Research and quantitative analysis skills
- Report writing
- Strong business communication and presentation skills
- Effective planner and ability to reprioritise workloads
- Self-motivated
- Good time management
- IT confidence, especially using macro and spreadsheets
- Numerical skills
A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:
- Complete understanding of financial markets’ performance indicators
- How to calculate investment performance
- Valuations methodologies
Working in performance measurement requires people who are good team workers, hard working, enthusiastic with excellent communication skills. Due to the numerical and reporting aspects of this job, English and maths qualifications are important. Whilst there are various levels of entry into the role, the most popular is through a formal graduate programme, which may include completing rotations in investment analysis, valuations and other related areas. Consequently, opportunities are mainly aimed at people that have achieved degree level qualifications.
Employers will require entrants to be numerate, but will accept graduates from any subject discipline who typically have achieved a 2.1 degree. Subjects like economics, business studies, maths or statistics are particularly relevant. Each employer specifies exact academic requirements and preferred subject.
Employers encourage performance measurement professionals to work towards relevant qualifications. The most recognised are:
- CFA Institute Certificate in Investment Performance Measurement (CIPM)
- Chartered Institute for Securities & Investment (CISI) Level 3 Certificate in Investments
- CFA Society of the UK Investment Management Certificate (IMC)
With several years’ experience, performance analysts may progress towards more advanced professional qualifications, such as:
- Chartered Financial Analyst (CFA) qualification (available through the CFA Society of the UK or by independent study from the CFA Institute)
- CISI Level 6 Certificate in Private Client Investment Advice and Management
- CISI Level 7 Masters in Wealth Management
- CISI Diploma
- Masters in Business Administration (MBA)
Most people working at this level strive to achieve Chartered Status with the most appropriate professional body.
Opportunities exist predominantly with investment/fund management companies, private banks and banks with an investment function. London, Manchester and Edinburgh are key locations for this role.
