As part of the reengineering initiative for SUPRA 2011 it was imperative for us to get down to the nitty-gritty of what keeps Performance and Risk professionals awake at night. With the help of co-chair, Mick Brant, we think we did it.

Before the conference we commissioned a survey with industry practitioners that uncovered their most pressing challenges and concerns. A full analysis of the survey was delivered at SUPRA and some of the results, many agreed, were quite surprising.

Download the free survey report and see for yourself

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This may be a one-sided view but hopefully it will prove a catalyst to re-thinking how we reach our audiences with performance measurement information.

As an industry our usual way of reporting is in tabular form (see Figures 1 & 2, overleaf). Recently while presenting at an industry conference I asked around 50 investment performance measurement-related professionals to confirm whether this is how they presented their performance attribution. The vote was unanimous. I asked them if this is how they’ve seen performance attribution presentations for more than a decade (as I have) — again, unanimous. I then asked them to tell me what information was contained in the first example (the 24 GICS groups). After a rather awkward silence I walked them through it. So this begs the question: If 50 investment performance and investment performance-related professionals can’t readily clarify the key information on a ubiquitous performance attribution report, what on earth makes you think anyone else can?

One of the first things we must bear in mind is the attention span of an audience. Do you know what it is? Not sure? How frequently does the average person flip channels when first handed a television remote? Every 10 seconds, or less. Sad but true. And hey, can you do me a favor and stop texting? Or take off the iPod headphones while we have this conversation? Now where were we? Oh yes, the audience’s attention span… see my point?

Even for a captive audience of interested professionals paying to hear someone, that speaker has their undivided attention for around 90 seconds straight. This is the frequency presenters are advised to move or make a gesture to retain an audience’s attention.

Mick Brant is a veteran of the investment analytics business, having over 25 years’ experience in the industry. Since the beginning of 2011, Mick has been working as an independent consultant.
Mick was previously the Global Head of the Performance and Attribution business at MSCI (formerly RiskMetrics), following the acquisition of Appled4 Technology in October 2008. In 2006, Mick established Applied4 with a number of his colleagues from Mellon Analytical Solutions (MAS) to develop and market an innovative performance and attribution platform. At MAS, Mick was European CEO and Managing Director of MAS International, where he was responsible for MAS’s business in EMEA, Australia & Asia.
Prior to this he was CEO of CAPS, a UK performance and attribution business that was acquired by Russell/Mellon in 2001. Mick joined CAPS in 1984 as IT Manager and in 1991 he was appointed to the board as Deputy Chief Executive, taking on a broad range of operational and client facing responsibilities. He became CEO of CAPS in 1998.

Mick was also Chairman of Risk Reporting, a joint venture between CAPS & Barra, prior to its acquisition by Russell/Mellon in 2003.
Prior to 1984, Mick held various positions in software development, IT management and management consultancy.

Colin Morrison is an Independent consultant working within the asset management industry providing consulting services across a range of areas: investment risk and performance, client reporting best practises, investment process examination and re-engineering, system selection and implementation. Previously he served as Head of Performance and Risk Measurement at Standard Life Investments and Global Head of Performance at Baring Asset Management.

Colin is a member of the GIPS Executive Committee as Chairman of the Investor Consultant Sub-Committee, he is Chairman of the Alternatives Investment Strategies Working Group and the Risk Working Group and representative for the United Kingdom to the EMEA Regional Investment Performance Sub-Committee. He is also a member of the IMA Investment Performance Working Party.