Perfromance attribution

The Euro-zone Value Stock Index earned a return of 18% during the past year.

• The Euro-zone Market Stock Index earned a return of 15% during the past year.

• During the same period, Well’s portfolio earned a return of 21%.

• Wells active risk computed with respect to the Euro-zone Market Stock Index is 6.7%

annually.

• Wells misfit risk is 5.5% annually.

I always have problems in determining which of these represent the manager’s normal benchmark return and which is the investror benchmark return. Would appreciate some assistance to help in undestanding one from the other.

Investor/market benchmark:

Euro-zone Market Stock Index

Identification: this is a really general, broad market index including many many stocks with different styles

Manager Benchmark

euro zone value stock index

identification: it says value. it is focused on the value stocks.

then you take it from here.