Do we need to calculate all of them and sum them up?
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Net contributions.
-
Risk-free asset.
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Asset categories.
-
Benchmarks.
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Investment managers. 6. Allocation effects. Micro analysis is easier…
Do we need to calculate all of them and sum them up?
Net contributions.
Risk-free asset.
Asset categories.
Benchmarks.
Investment managers. 6. Allocation effects. Micro analysis is easier…
Any thoughts?
Yes. There are six levels of performance allocation, each requiring a higher level of risk tolerance.Everything above the line comes from something other than pure tracking a broad market index.
Allocation Effects: Residual return due to various imprecise allocation
Investment Managers: Alpha generated above style benchmark (allocatio
Benchmarks: Passive investment in relevant style benchmark
Asset Category: Any asset allocation other than 100% risk-free
Risk-free Rate: Safest possible return (minimum acceptable)
Net Contributions: Cash flows invested at the zero-rate
Wow, thanks Rogue. After one year…you still remember this, amazing:)