Joost Meerwijk, CFA CIPM, senior consultant Ortec Finance Investment Performance, spoke at CIBR Conferences’ 9th annual iPARM 2021.
Joost Meerwijk addressed amongst others these topics during his performance evaluation of private assets session:
- Measuring performance of private assets in isolation
- Benchmarking private assets
- How to quantify ex-post alpha?
- Mixing private and public assets in a fund-level strategic asset mix.
Many people see challenges in performance evaluation of private assets, like:
- (Timing of) Cash flows are not at the discretion of the asset owner
- How to quantify ex-post alpha
- Valuation of assets may be infrequent, inaccurate and/or late.
Joost discussed methodologies and ways to overcome these assumed challenges. Amongst others he introduced ‘Implementation mix’ as a bridge between the portfolio and the strategic mix.
At the end of the session interesting questions from the audience were addressed, like:
- “Do you see clients recalculating IRRs once the final valuations have been received?”
- “Do you foresee a reduced illiquidity premium for private assets due to their popularity?”
- “What could be the added value of peer group analysis in performance attribution?”