As of December 31, 2021
Context for Investment Results
Client portfolios are managed according to their unique strategic asset allocations, which vary according to each client’s financial requirements, risk tolerance and other factors. As a result, our clients report their own investment results separately from IMCO.
Our one-year returns by asset class represent the results of each IMCO investment strategy. All rates of return use the time-weighted rate of return methodology.
The consolidated IMCO one-year return is a weighted average return, based on daily calculations, of our various asset class strategies. Our reported return is net of all costs. The total benchmark return is the weighted average return of the client benchmarks, daily weighted based on clients’ proportionate investment in each IMCO strategy.
IMCO Benchmarks and Value Add
The IMCO investment policy statement (IPS) for each asset class contains one market-based or custom benchmark. A benchmark is a standard against which performance can be measured. Typically, a relevant market index or a combination of market indexes is used. This allows investment managers to compare the results of active management to the results that could have been achieved passively by investing in an index. A benchmark shows how much value an active manager has provided, and what strategies or assets affected relative performance.