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Performance measurement, attribution and risk 'made simple' for pension funds

20 October 2011

A new guide is being published today (Thursday) by the National Association of Pension Funds (NAPF) to help trustees and pension fund managers understand performance measurement, attribution and risk analysis – three fundamentals for the evaluation of a pension fund’s performance.

The guide is the latest addition to the popular NAPF made simple series. It is being issued at a time when, more than ever, the performance of a pension fund counts.

Performance measurement allows trustees and pension fund 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 fund’s return is different from the fund’s benchmark, and helps assess whether relative performance is due to chance or skill.  And risk analysis enables trustees to consider the risks associated with the fund’s returns.

By explaining these three elements in a thorough but concise way, the Performance Measurement, Attribution and Risk made simple will prove a key resource to all those involved in the evaluation of a pension fund’s performance.

Joanne Segars, Chief Executive of the NAPF, said:

“Performance is a core factor for trustees and pension managers, and pension funds 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. So we are very pleased to make this made simple available to trustees and pension fund managers.”

Performance Measurement, Attribution and Risk Made Simple is produced and sponsored by J.P. Morgan.

Commenting on the guide, Benjie Fraser, Practice Lead, EMEA, Pensions and Endowments at J.P. Morgan, Worldwide Securities Services, said:

“We are extremely proud to be associated with this new NAPF guide. The guide provides a vital tool for pension funds. The need for transparency around pension fund performance is key in today’s market.”

The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online at www.napf.co.uk

Notes to editors:

1. Joanne Segars and Benjie Fraser are available for interview.

2. Performance Measurement, Attribution and Risk made simple will be launched at the NAPF Annual Conference in Manchester today at 6.00pm.

3. Other recent made simple guides include Hedge Funds made simple, Stewardship made simple and Derivatives made simple.

4. J.P. Morgan Worldwide Securities Services (WSS) is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. A division of JPMorgan Chase Bank, WSS leverages the firm’s global scale, leading technology and deep industry expertise to service investments around the world. It has $16.6 trillion in assets under custody and $7.5 trillion in funds under administration. For more information, go to www.jpmorgan.com/wss. 5. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]

Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]