Asian investors are looking at absolute returns rather than relative returns from their investment portfolios, according to private bankers.
Traditionally, investment performance is measured against a benchmark index, typically one of the Morgan Stanley Capital International (MSCI) indices. Gauging performance in this way means an investment portfolio would be considered successful as long as it was beating its benchmark index.
However, since the 2000 market crash, Asian investors have been taking less comfort from relative performance and looking more for cold, hard returns.
Clement Hui, head of investment advisory at Credit Suisse's north Asia private banking unit, said investors had every right to see investment this way.
'Some investors have always looked for absolute returns and that's what investment should be about. You invest to preserve your capital or grow your capital. Why should you invest to lose money, even if you are outperforming on a relative basis?'
Mr Hui said demand for absolute returns required private bankers to look at portfolio management in a more dynamic way.