Mutual Fund Selection & Assessment


Increasing competition, globalisation and other changes in the Mutual Funds industry is having some fundamental consequences:

  • more funds in each area and more specialist areas
  • funds are increasingly assessed against each other
  • fund assessments are becoming more complex and discerning
  • a move towards Private Bankers offering other selected funds besides their own as an alternative to direct equity and fixed income investment

This one day course provides a unique concise briefing as to the parameters used in fund assessment and the means to assess funds assuming no prior knowledge. A basic fund knowledge and familiarity with securities is assumed.


  • Fund Managers
  • Investment Fund Administrators
  • Private Bankers
  • Mutual Fund or Fund Manager marketing staff
  • Performance Measurement staff involved in this area
  • IT staff involved in this area


Background to Mutual Funds

-Review of fund jargon and pricing process. Different fund structures reviewed.
-Types of fund reviewed including hedge fund varieties.
-Market locations and sizes. Market developments and trends.

Performance Measurement

-Total Returns and Annualised returns. Converting one to another.
-Time weighted v Money weighted returns.
-Interpreting the basic figures: Gross v Net of charges, Pricing basis, Survivor bias etc.
-Volatility measures. Peer Group Analysis: Selecting the peer group.
-Benchmark selection and comparison. Customised benchmark.
-Use of positive and negative months, drawdown and their significance.
-Fund correlation to a market. R squared explained.

Risk Adjusted Returns and Advanced Performance Measures

-Selecting a risk free rate. Risk adjusted performance.
-Technical Analysis ratios.
-Sharpe and Sortino Measures. Treynor and Jensen Measures.
-Correlation measures. Why low correlation is not necessarily low risk. How correlation can vary with style.
-Information Ratio. Tracking Error. Value at Risk (VaR). Measuring its use.
-Risk adjusted performance examples.
-Snake trails, benchmark line and risk return history.
-Examples and Exercises.

Fund Manager Selection and Exercises

Criteria in fund selection reviewed: client requirements, risk tolerance, time horizon, asset allocation etc. Bar bell approach.

Todays Date:

Duration 1 day
Available as an in-house course

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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