Performance measurement is essential to evaluate managers from "summary" of Institutional Investment Management by Frank J. Fabozzi
Performance measurement plays a crucial role in evaluating the effectiveness of managers within institutional investment management. By assessing the performance of managers, institutions can gain valuable insights into the competence and capabilities of those entrusted with making investment decisions on their behalf. The ability to gauge how well managers are fulfilling their responsibilities is essential for ensuring that investment objectives are being met and that resources are being allocated efficiently and effectively. One of the primary reasons why performance measurement is indispensable in evaluating managers is that it provides a quantitative basis for assessing their contributions to the overall investment process. By comparing actual performance against established benchmarks and targets, institutions can determine whether managers are adding value to the investment portfolio or falling short of expectations. This information is vital for identifying areas of strength and weakness in manager performance and for making informed decisions abou...
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