Stefan Dunatov, CIO of Coal Pension Trustees, said the shift in focus more towards “wealth” rather than just percentage gains would improve investor understanding of how to achieve investment objectives and the risks involved.
In a new paper – “Using wealth, not returns, to set objectives and measure success” – Dunatov argued that it was the level of wealth, rather than returns, that will determine how well investors with present or future liabilities will achieve their goals.