Ask Aapryl

  Return Simulator

Investment Fund Manager Extrapolated Historical Performance

Return Simulator enables users to include short track record managers in allocation analysis normally reserved for managers with longer records.

 
Aapryl’s Return Simulator module allows investors to extend a manager product’s track record to evaluate managers with shorter track records. Not all managers have a sufficiently long track record for evaluation. The industry standard for evaluating manager track records requires at least 5 years of returns, which systematically excludes  managers with short track records who might otherwise be qualified. Using a minimum of 24 months of results, Aapryl’s Return Simulator provides 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 managers with short track records.

HOW RETURN SIMULATOR WORKS:

Start Return Simulator icon

START RETURN SIMULATOR

Return Simulator is a statistically robust method for extrapolating performance out to the 60-month minimum required for meaningful analysis.
Select Manager Product

SELECT A MANAGER PRODUCT

Select a Manager Product, and a confidence level to create simulated, historical performance returns.
View Simulated Returns

VIEW THE SIMULATED 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.

RETURN SIMULATOR HIGHLIGHTS HISTORICAL PERFORMANCE:

  • Extends manager performance to meet the traditional 5 year return requirement needed to perform robust analysis.
  • Allows for the inclusion of relatively new but otherwise qualified managers in searches.
  • Provides framework for hypothetical manager comparisons and stress tests.

For more information on how Aapryl's proprietary methodologies can be used, please contact us at info@aapryl.com.