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Report of the Quarter

Value Added Chart

One of the most frequently asked questions our clients ask themselves about their managers is: “How has the manager’s performance fared compared to their benchmark?”

BNY Mellon Asset Servicing developed a Value Added chart that graphically represents the value a client attains from a manager above what they would receive from passive investing.

The Value Added chart allows you to quickly determine whether a manager’s investment strategy has paid off overall, as well as the time periods in which the manager’s strategy has beat its benchmark.

Key Features Include:

• Visually depicts the annualized and cumulative value that a manager provided compared to a market proxy.
• Gauge a manager’s performance in different investment climates by monitoring the value added for individual months, quarters and longer custom time periods.
• Specify the time period and market proxy to allow for a more meaningful comparison of the manager’s performance.

This sample chart illustrates how the investor benefited from investing with ABC Large Cap Growth Manager relative to the market proxy, Russell 1000® Growth Index, for a five-year period ending November 30, 2008. Cumulatively, the value added by Manager ABC was approximately 2,000 basis points while the annualized value added was about 360 basis points to the investor's performance.

If you have any questions regarding this report or any of our products and services, please contact your Investment Analytics Consultant.