{"id":40021,"date":"2024-08-09T06:15:42","date_gmt":"2024-08-09T06:15:42","guid":{"rendered":"https:\/\/analystprep.com\/study-notes\/?p=40021"},"modified":"2024-08-11T09:31:37","modified_gmt":"2024-08-11T09:31:37","slug":"return-attribution-analysis-2","status":"publish","type":"post","link":"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/return-attribution-analysis-2\/","title":{"rendered":"Return Attribution Analysis"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/9BiYL9HFBPk\" width=\"611\" height=\"343\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Results Attributable to the Investment Manager<\/h2>\n<p>Those results due to the decision of the investment manager are also known as <strong>Micro attribution<\/strong>. This analysis involves understanding the drivers of a manager&apos;s returns and whether those drivers are consistent with the stated investment process. <\/p>\n<h2>Results Attributable to the Asset Owner<\/h2>\n<p>Attribution can be conducted to evaluate the asset owner&apos;s decisions. This level is known as <strong>macro attribution<\/strong>. Each asset class is allocated a percentage of the fund by the institutional investor, and each manager is hired to manage each asset class. <em>Macro attribution<\/em> measures the effect of the sponsor&apos;s choice to switch from the strategic asset allocation, including the effect of &ldquo;gaps&rdquo; between the strategic asset allocation and its implementation. In addition to measuring manager selection and timing effects, macro attribution also measures the effects of managerial decisions. <\/p>\n<blockquote>\n<h2>Question<\/h2>\n<p>Which of the following best describes micro attribution?<\/p>\n<ol type=\"A\">\n<li>Results due to investment manager decision<\/li>\n<li>Results due to asset owner<\/li>\n<li>Fund sponsor-level decisions<\/li>\n<\/ol>\n<p><strong>Solution<\/strong><\/p>\n<p><strong>The correct answer is A.<\/strong><\/p>\n<p>Those results due to the decision of the investment manager are also known as Micro attribution.  This analysis involves understanding the drivers of a manager&apos;s returns and whether those drivers are consistent with the stated investment process. <\/p>\n<p><strong>B and C are incorrect.<\/strong> They both represent macro attribution.<\/p>\n<\/blockquote>\n<p><strong>Performance Measurement: Learning Module 1: Portfolio Performance Evaluation<\/p>\n<p> Los 1(h) Identify and interpret investment results attributable to the asset owner versus those attributable to the investment manager<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Results Attributable to the Investment Manager Those results due to the decision of the investment manager are also known as Micro attribution. This analysis involves understanding the drivers of a manager&apos;s returns and whether those drivers are consistent with the&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[571],"tags":[],"class_list":["post-40021","post","type-post","status-publish","format-standard","hentry","category-cfa-level-iii","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Return Attribution Analysis - CFA, FRM, and Actuarial Exams Study Notes<\/title>\n<meta name=\"description\" content=\"Identify and interpret investment results attributable to the asset owner versus those attributable to the investment manager.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/analystprep.com\/study-notes\/cfa-level-iii\/return-attribution-analysis-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Return Attribution Analysis - 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