NAPF publishes guide to help understand pension scheme performance

The National Association of Pension Funds (NAPF) has published a guide to help trustees and pension fund managers understand the three fundamentals for the evaluation of a pension scheme’s performance. 

Produced and sponsored by JP Morgan, Performance measurement, attribution and risk made simple, is the latest in a series of NAPF guides.

The guide elaborates on the three fundamentals: 

  • Performance measurement allows trustees and pension scheme managers to understand whether the investment objectives are being met and if the investment managers are achieving their targets.
  • Attribution analysis permits trustees to understand why a pension scheme’s return is different from its benchmark, and helps assess whether relative performance is due to chance or skill.
  • Risk analysis enables trustees to consider the risks associated with the fund’s returns.

Joanne Segars, chief executive of the NAPF, said: “Performance is a core factor for trustees and pension managers, and pension schemes expend a lot of time and effort striving for the best results.

“In today’s economically and financially challenging climate the pressure to secure the best possible return from assets is greater than ever. We are very pleased to make this guide available to trustees and pension fund managers.”

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