This technical note proves a simple mathematical relationship between the return on assets (ROA) of financial accounting standards and the return on investments (ROI) of investment performance standards. We show why this relationship is needed by users of APRA data to convert ROA to ROI for...

We analyze the implications of linking the compensation of fund managers to the return of their portfolio relative to that of a benchmark - a common solution to the agency problem in delegated portfolio management. In the presence of such relative-performance-based objectives, investors have...

We analyze the implications of linking the compensation of fund managers to the return of their portfolio relative to that of a benchmark—a common solution to the agency problem in delegated portfolio management. In the presence of such relativeperformance- based objectives, investors have...