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Metric Monitor - Performance Metrics for Investment Research - Methodology

Metric Monitor uses two core methodologies for the performance verification of investment research. This consists of either the Metric Monitor Standard or Metric Monitor Custom methodologies. For a description of each methodology, including the main underlying principles and assumptions, see below.

Metric Monitor Standard

  • This methodology is of particular use when reviewing multiple research publishers or return observations and is the most commonly used methodology from Metric Monitor
  • Derives an average return of individual investments across a portfolio
  • At any one time the size of investments in a portfolio are considered equally weighted
  • The size of the investment is irrelevant therefore returns are "scale free"
  • Operates using "percentage rates of return" and not "market" or "portfolio dollar values"
  • All investors are treated equally therefore no tax or commission costs are applied
  • Total returns are calculated so all dividend and interest distributions are included
  • Exhibits "time-weighted rates of return"

Metric Monitor Custom

  • This methodology is predominantly used by individual research publishers to meet their specific requirements
  • The methodology is based on the research publishers own specific requirements
  • All assumptions are provided by the research publisher
  • Custom methodologies must be provided across the full time series of data (methodologies cannot vary through time)
  • The same custom methodology must be applied across all investment research comparisons

Regardless of the methodology selected, to ensure the integrity of the Metric Monitor service, no methodology may be applied in a manner which compromises the objectivity or accuracy of the Metric Monitor performance metrics. Metric Monitor maintains final authorisation for all performance verification and reserves the right to terminate or refuse certification of any party deemed not in compliance with Metric Monitor methodologies and standards.

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To confirm that a research publisher has been verified by Metric Monitor, enter their details below (Metric Monitor codes are obtained from the research publisher directly).