Measuring and evaluating performance provide an opportunity to compare the relative success of an organization’s investment strategy with stated objectives and relevant benchmarks. Performance attribution indicates how significantly asset class, sector, individual security, currency, and country exposure contribute to fluctuations in a portfolio’s market value. Comprehensive analysis of an organization’s total portfolio provides all relevant information used to evaluate the achievement of its investment objectives and make informed decisions.

Campion calculates and presents net-of-fee investment performance using the modified Dietz methodology (i.e., time-weighted returns with geometric linking) and predetermined performance benchmarks including:

We can also provide customized benchmarks that reflect the overall allocation between stocks, bonds, and cash. We do not provide peer universe comparisons because we believe these “comparisons” contribute to performance gaming given the influence of survivorship bias and other methodology flaws.

After comparing portfolio performance against the agreed upon benchmarks, we will examine other key drivers of investment performance, including sector and individual security exposure. The extent to which these factors affect performance is driven primarily by the relative sector and individual security weights in the portfolio compared to the index. Beyond sector and individual security weights, the firm can then delve into specific portfolio characteristics (i.e., dividend yield or price-to-book ratio), which will provide additional insight to the portfolio’s risk.