Investment

Ratio d’Information

A performance measure comparing the active return of a portfolio to the tracking error, showing how efficiently a manager generates excess return relative to benchmark risk.

Quick answer: A performance measure comparing the active return of a portfolio to the tracking error, showing how efficiently a manager generates excess return relative to benchmark risk.

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Quick answer

A performance measure comparing the active return of a portfolio to the tracking error, showing how efficiently a manager generates excess return relative to benchmark risk.

Why it matters

Ratio d’Information matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Ratio d’Information?

In this glossary, Ratio d’Information refers to: A performance measure comparing the active return of a portfolio to the tracking error, showing how efficiently a manager generates excess return relative to benchmark risk.

How is Ratio d’Information used in finance?

In finance communication, this term appears in contexts such as: "Un ratio d’information élevé indique que le gestionnaire surperforme systématiquement l’indice compte tenu du risque actif pris."

Why does Ratio d’Information matter in finance?

Ratio d’Information matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Ratio d’Information?

Ratio d’Information is mainly used by Financial Analysts, Bankers, and Traders.

What category does Ratio d’Information belong to?

In this glossary, Ratio d’Information is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A performance measure comparing the active return of a portfolio to the tracking error, showing how efficiently a manager generates excess return relative to benchmark risk.

Operational example

A higher Information Ratio suggests the manager consistently adds value by outperforming the benchmark relative to the level of active risk taken.

Localized term

Ratio d’Information

Localized example

Un ratio d’information élevé indique que le gestionnaire surperforme systématiquement l’indice compte tenu du risque actif pris.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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