 |
Once performance results have been calculated for a plan or portfolio, INFORM enables clients to analyze the market effects that have contributed to the overall results. Understanding the elements that have caused portfolio performance to deviate from market performance is vital to controlling portfolio risk and maximizing returns. Risk attribution and analysis help to explain why a particular deviation occurred.
Using INFORM’s attribution analysis, clients can attribute performance results to allocation drift and active management decisions, such as sector selection and security selection. For multi-currency portfolios, INFORM’s attribution model displays country returns, security selection and currency effect. Returns can be compared against a variety of U.S. and global equity and fixed income indices.
In addition, clients can take advantage of a number of third-party models, which chart performance attribution versus different market indices. While each model uses different factors, they all provide detailed insight into the sources of performance.
INFORM’s attribution analysis can also be shown in graphical format, allowing clients to visualize exactly how the managers’ decisions contributed to performance results. This powerful attribution model is an extremely effective way for clients to measure a manager’s adherence to a particular style or investment policy, and to evaluate its over- or under-performance against the benchmark.
|
 |
