Attribution Overview

Attribution analysis breaks down a portfolio's rate of return by various factors, such as sector selection and stock selection. This analysis is performed to determine a portfolio manager's contribution to rate of return by active decisions. You can run attribution analysis by manager, index, and time periods.

Attribution reports are organized according to three factors:

• Geometric vs. Arithmetic Model of Attribution
• Country vs. Sector Attribution
• Inclusion vs. Exclusion of Currency Effect

The Geometric Model (also called Multiplicative) is the more accepted approach for measuring attribution over multiple time periods. The Arithmetic Model (also known as Additive) can yield useful information for a single period.

Country Attribution displays the effects of country allocation and security selection on a portfolio's rate of return. Sector Attribution analyzes the effects of sector allocation and security selection.

Currency Effect measures a manager's active currency management decisions and the contribution of those decsiions to portfolio return.

These analyses generate three types of reports: Total, Summary, and Detail. The format of the report depends on the type of analysis.

There are three parameters that must be set in Fundamentals before you can run an attribution analysis:

• Group/Account - select an account or a trust to analyze
• Time Periods - choose a reference date for your analysis, then select a time period frequency
• Index - select an index to measure the performance of your portfolio against the market

Your index is automatically set. You will need to change it if you do not want to use the default in your analysis.