Master Portfolio Performance Measurement and Attribution with the Industry-Leading Reference Guide

About the Book

This comprehensive guide focuses on real-world application rather than academic theory, helping asset managers and investors determine return on assets, analyze portfolio behavior, and improve performance. The third edition reflects recent developments in performance attribution and presentation standards, providing fully updated coverage of the entire performance measurement process. You’ll discover how to determine the risk-adjusted return on assets in a portfolio, understand why the portfolio has performed in that way, and learn proven strategies to improve performance.

About the Author

Carl R. Bacon, CIPM, is Chief Advisor to Confluence and a member of the Advisory Board of the Journal of Performance Measurement. He is the former Chairman of StatPro plc, Director of Risk Control and Performance at Foreign & Colonial Management Ltd, and Vice President Head of Performance (Europe) for JP Morgan Investment Management Inc. Carl draws on decades of experience at the forefront of developments in global investment performance standards, performance attribution techniques, and risk measurement, making him one of the most trusted voices in the field.

Who Is This Book For?

This hardcover edition is essential for performance analysts, risk controllers, portfolio managers, and compliance professionals who need practical guidance they can implement immediately. Asset managers, consultants, pension fund trustees, and verifiers will find this book invaluable for mastering the calculations, methodologies, and standards that drive informed investment decisions. If you’re responsible for measuring, analyzing, or reporting on investment performance, this reference belongs on your desk.

What You’ll Learn from This Book

Gain comprehensive understanding of return calculations, attribution methodologies, risk measures, manager selection, and presentation of performance information. The book explores the mathematical aspects of performance measurement and attribution in a clear, straightforward, and easy-to-understand fashion, offering worked examples supported by Excel spreadsheets. You’ll master techniques used by today’s leading performance analysts while gaining insights that only come from decades of hands-on experience. The alignment with 2020 Global Investment Performance Standards ensures you’re working with current best practices.

Frequently Asked Questions (FAQs)

Q: What makes this portfolio performance book different from academic textbooks?
This book prioritizes practical application over theory. You get real-world examples, Excel-based calculations, and techniques you can implement immediately in your asset management practice, making it perfect for practitioners who need actionable guidance.

Q: Is this book suitable for beginners in portfolio performance measurement?
While written for finance professionals, the clear explanations and worked examples make complex mathematical concepts accessible. The book is ideal for performance analysts, portfolio managers, and anyone working in asset management who needs to understand performance measurement and attribution.

Q: Does this book cover the latest GIPS performance standards?
Yes, the third edition aligns with the 2020 Global Investment Performance Standards (GIPS), ensuring you’re learning current best practices and compliance requirements used across the global investment industry.

Q: What topics does this portfolio attribution guide cover?
The book provides comprehensive coverage including return calculations, attribution methodologies, risk measures, manager selection, fixed income attribution, derivative instruments, alternative investment strategies, and presentation of performance information.

Q: Can I use this book to improve my portfolio management skills?
Absolutely. This reference helps you understand portfolio behavior, analyze sources of return, identify structural issues, and implement improvements based on rigorous performance measurement—skills that directly enhance portfolio management effectiveness.