PERFORMANCE MANAGEMENT
Decision Performance
Conversely risk assessment, measuring the organization or investment performance is a permanent daunting task having to take into account a lot of variables besides the underlying risk quantification. When dealing with extreme risk parameters, decision performance have always an erratic shape, being simultaneously out of control and unpredictable.
Extreme risk situations are not always correlated with extreme performance results, that is why smoothing algorithms are employed to minimize decision performance’s peaks, resulting decisions with more predictability and lower or none existent elements of the extreme risk.
Portfolio Performance
Investment performance are dealing for the most cases with the management of a hybrid asset portfolio where correlation and hedging are difficult to be realized in order to produce real performance. FincoNet Portfolio Performance Analytics helps companies including investment funds to choose the right allocation among their asset properly correlated, with predictable performance.
Asset Allocation
Enhanced portfolio performance is mostly given by the quality of asset and the correlation degree between them. The quality is sorted out by fundamental analytics while the correlation degree is sorted by quantitative analytics. A new and revolutionary approach is employed to fine tune the weight of assets and its nature within an investment portfolio. Based on inputs collected by the help of technical analysis, the asset allocation techniques are calculating the optimum asset weight for the medium and long term investments based on market sentiment and conditions.
Trade Commission Management and Optimization
For asset managers, commissions are becoming a very sensitive issue specially when they are pushed lower and lower. Techniques using optimization algorithms helps investment managers to find the best turnover ratio for an investment portfolio in order to maintain the proposed performance objectives taking in account commission, fees and other variable expenses.
Portfolio Performance: Robo – Advisory Services
Using Robo – Advisory Services in correlation with portfolio performance brings a new tool for the decision makers when planning an investment process. Algorithms and new techniques are issuing rebalancing signals for any investment portfolio including those having a hybrid structure. Usually portfolio rebalancing are done once a monthly, quarterly or annually. This methodology is not quite as effective for a medium- long term investment time horizon as long as redundant rebalancing expenses are reducing the projected performance.
