Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Information Ratio

A measurement of portfolio returns beyond the returns of a benchmark, usually an index, compared to the volatility of those returns; often used as a measure of a portfolio manager's level of skill and ability to generate excess returns relative to a benchmark; also attempts to identify the consistency of the performance by incorporating a tracking error, or standard deviation component into the calculation.

Source: NCREIF | Date: 05 September 2025 | ID: D1212 | Version: 1