Page 17 - DCAC November 2023 Files

Following a Prudent Due Diligence Process

Understanding Investment Performance

• Absolute vs. Relative Performance

– Absolute Performance is the absolute percentage an investment gained or lost during a specific

timeframe (i.e. one quarter, one year, 5-year average, etc.) net of investment expenses.

– Relative Performance is an investment’s return compared to (relative to) an index or peer group
during a specific timeframe (i.e. one quarter, one year, 5-year average, etc.) net of investment

expenses.

• Short-Term and Long-Term Performance

– Short-Term Performance is the absolute performance for a fund during timeframes less than one year.

– Annualized Performance is the average annualized return of an investment over longer-term

timeframes, such as 1-Year, 3-Year, 10-Year, etc.

© 2023 Innovest Portfolio Solutions, LLC 7