Working paper
Performance evaluation for long term investors
Publisher
Investments
Finance
Long-term investing
Monitoring and evaluation
Portfolio management
Description
A performance evaluation approach is developed to support long-term investment programs, where asset selection is based on the internal rate of return estimated with reference to long-term cash flows. Returns are attributed into three components reflecting expected return, changes in discount rates, and changes in expected cash flows. Evaluating performance in this manner focuses attention on the key driver of long-term returns: cash flows generated over the long run, relative to the price paid.
Publication Details
DOI:
10.4225/50/583e402ba3baa
Access Rights Type:
open
Post date:
15 Aug 2016
