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Relative Return
(redirected from Relative Returns)

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Relative Return
In investing, the return on an asset or other investment compared to some benchmark. For example, the return on a stock may be 8% over a given period of time. This may sound rather high, but if the return on the designated benchmark index is 20% over the same period of time, then the relative return on that stock is in fact -12%. The relative return is important for determining how the return of a given stock or fund compares to that of other potential investments. This can be useful in making investment decisions.


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JKMilne Asset Management is a 5-year-old employee-owned investment adviser firm registered with the Securities and Exchange Commission that manages key components of bond risk for institutional clients, to produce higher relative returns at volatility below that of the market.
However, he says, "once pension funds and endowments have a chance to analyse their aggregate portfolios' performance over time," they will see that the premier private equity firm's absolute and relative returns continue to surpass publicly quoted stocks, which will reinforce the importance of private equity investments.
Apart from it being sensible to keep track of where your hardearned money is being invested, along with the relative returns it is making, it pays to do some research in advance and to make sure that the financial advice and/or management you ask for is the advice you really need.
 
 
 
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