Aapryl’s Return Simulator module allows investors to extend a manager product’s track record in order to evaluate shorter track records. Not all managers will have a sufficiently long track record for evaluation. The industry standard for evaluating manager track records requires at least 5 years, which systematically excludes short-tracked record managers who otherwise have a verifiable longer track record with previous firms.
Using a minimum 24 months of results, as well as the manager’s peer groups’ historical performance, return simulator is a statistically robust method for extrapolating performance out to the 60-month minimum required for meaningful analysis. This allows investors to evaluate experienced and talented portfolio managers at new firms and helps to remove the inherent structural barrier to entry for short-tracked record managers when competing for an allocation.
Aapryl’s Return Simulator module enables users to include short track record investment managers in allocation analysis normally reserved for managers with longer records.
Return Simulator is a statistically robust method for extrapolating performance out to the 60-month minimum required for meaningful analysis.
Select a Manager Product, and a confidence level to create simulated, historical performance returns.
View and analyze the simulated performance returns to be used for further analysis.
This module allows users to perform a quick check of data integrity to ensure that the mean of the simulated returns is within the lower and upper confidence intervals. The results from the Return Simulator module are available for use in order to perform robust selection and allocation analysis throughout Aapryl.