global portfolio return attribution
In a bit of a departure from our normal sort of post (what is normal, anyway, for the House of Gjertsen?), I would like to welcome visitors from analystforum.com—strange folks, who, like me, are spending a perfectly gorgeous spring trying to fill their brains and retain enough facts about global asset management to take their last CFA exam this June.
The rest of you non-CFA types are welcome to follow along. The topic at hand has to do with if a global portfolio manger outperformed (or underperfomed) a benchmark, what was the cause of the outperformance (or underperformance)? Was it primarily about stock picking in certain countries? Or the overweighting of certain countries’ markets? Or the movement of foreign currencies? All things which are awesome to know, right?
Well anyway, here’s a glimpse into my professional life. Unfortunately, due to Microsoft’s buggy but cutting-edge SkyDrive technology, the animations in the slideshow do not work correctly unless you:
- view full-size presentation (bottom-right corner, below), and then (important)
- click on “Start Slide Show” at the top of the window that opens.
4/20 UPDATE: Here’s another graphical explanation for CFA Level 3, this one addressing multi-period attribution. Follow the same instructions as above: