Portfolio Performance Evaluation: Investment Corporation of Bangladesh

Abstract

The number of mutual funds which are professionally managed is increasing in the financial arena. With time the importance of portfolio performance measurement tools are really booming since investors will always like to choose fund managers on a comparative basis. The influence of traditional portfolio measurement tools are also waning with the enhanced level of competition. This very research paper had evaluated the ICB fund manager’s performance on a timeline basis based on the traditional techniques of measuring the performance of portfolio. It was revealed that the performance of the ICB portfolio is satisfactory if not extraordinary. Much of the underperformance can be attributed to the structural rigidity of the organization.

Keywords: Sharpe index, Treynor index, Jensen Alpha, Fama decomposition, NAV