The aim of performance evaluation is to make judgments about the success of portfolio managers in asset allocation and security selection for investment portfolios. This article presents a method of performance measurement that uses the interdependence of market management and currency management in terms of allocation processes but allows their separation in terms of selection processes. As a consequence, performance evaluation is more reasonable than in previous approaches and produces the same results whether the investment process starts with market management followed by currency management or vice versa.
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