How would you set the objectives of an analyst?

Do you guys have any ideas, or know of examples of performance measures that I could propose?

Do you have primary research responsibility for these names or are you in a supporting / entry level role? How are they tracking the other analysts' performance?

Authored by: Certified Asset Management Professional - DirectorCertified Asset Management Pro

InTheNameOf

I have primary research responsibility for the names I cover, yes. I have 2,5 years experience in the role but, as the firm is growing, they have started to look for ways to improve tracking the analysts' performance in a more "formal" way. But until now there has not been any particular way in which other analysts' performance has been tracked.

Authored by: Certified Asset Management Professional - 2nd Year AnalystCertified Asset Management Pro

Best Response

I have primary research responsibility for the names I cover, yes. I have 2,5 years experience in the role but, as the firm is growing, they have started to look for ways to improve tracking the analysts' performance in a more "formal" way. But until now there has not been any particular way in which other analysts' performance has been tracked

We use CapitalIQ and Factset to track analyst investment performance. It basically works like a paper portfolio. Whenever I submit a formal recommendation to my PM it goes on my performance sheet. We then track both the absolute and relative performance of the name vs. our product's benchmark. You can probably track the volatility as well, though we don't do this. We do it for both buy and sell recommendations.

The major components of our review are thus 1) average relative performance vs. benchmark for names recommended 2) average absolute performance 3) hit rate. Qualitative factors also come into play, but the quantitative part is quite important especially the longer you've been at the firm.

Authored by: Certified Asset Management Professional - DirectorCertified Asset Management Pro

InTheNameOf

Great, thanks! And could you share a couple of qualitative factors that are usually considered?

Authored by: Certified Asset Management Professional - 2nd Year AnalystCertified Asset Management Pro

1logic

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I have primary research responsibility for the names I cover, yes. I have 2,5 years experience in the role but, as the firm is growing, they have started to look for ways to improve tracking the analysts' performance in a more "formal" way. But until now there has not been any particular way in which other analysts' performance has been tracked

We use CapitalIQ and Factset to track analyst investment performance. It basically works like a paper portfolio. Whenever I submit a formal recommendation to my PM it goes on my performance sheet. We then track both the absolute and relative performance of the name vs. our product's benchmark. You can probably track the volatility as well, though we don't do this. We do it for both buy and sell recommendations.

The major components of our review are thus 1) average relative performance vs. benchmark for names recommended 2) average absolute performance 3) hit rate. Qualitative factors also come into play, but the quantitative part is quite important especially the longer you've been at the firm.

What kind of time periods do they look at? Is it simply annually or like 1, 3, 5?

Do they track you against the broad benchmark or sector/country specific benchmarks?

Authored by: Certified Asset Management Professional - 2nd Year AssociateCertified Asset Management Pro

could you share a couple of qualitative factors that are usually considered?

participation in client meetings and marketing activities
amount of travel and company meetings taken
being a team player
quality of written recommendations
taking on general team projects that can't easily be tracked back to investment performance

Authored by: Certified Asset Management Professional - DirectorCertified Asset Management Pro

InTheNameOf

Thanks again!

Authored by: Certified Asset Management Professional - 2nd Year AnalystCertified Asset Management Pro

What kind of time periods do they look at? Is it simply annually or like 1, 3, 5?

We do it every 6 months and then against inception. However, we could easily measure it on other bases (1yr,3yr, 5yr, etc.). There's no one right way.

Do they track you against the broad benchmark or sector/country specific benchmarks?

Broad benchmark in USD performance. We could also easily add performance vs. sectors or countries. However, everyone on my team is a generalist, so this wouldn't necessarily be the best benchmark.

Authored by: Certified Asset Management Professional - DirectorCertified Asset Management Pro

1logic

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