Attribution Analysis
Attribution Analysis is a way to understand why an investment portfolio performed well or poorly. It's like a detailed report card that shows which investment decisions helped or hurt the overall results. Investment managers use this to explain to clients where the money was made or lost, breaking down the impact of different choices like picking specific stocks or investing in certain industries. Think of it as a diagnostic tool that helps determine if good performance was due to skill or just luck.
Examples in Resumes
Conducted Attribution Analysis for $2B equity portfolio to identify key performance drivers
Developed automated Performance Attribution reports for institutional clients
Led team implementing new Attribution Analysis system for multi-currency portfolios
Created monthly Return Attribution presentations for board meetings
Typical job title: "Attribution Analysts"
Also try searching for:
Where to Find Attribution Analysts
Professional Organizations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How would you explain attribution analysis results to a non-technical client?
Expected Answer: Should demonstrate ability to break down complex analysis into simple terms, use relevant examples, and focus on key insights that matter to the client without using technical jargon.
Q: What steps would you take to investigate unexpected attribution results?
Expected Answer: Should explain systematic approach to validating data, checking calculation methodology, reviewing market conditions, and collaborating with portfolio managers to understand trading decisions.
Mid Level Questions
Q: What are the main components of attribution analysis?
Expected Answer: Should explain allocation effect (choosing sectors/markets), selection effect (choosing specific investments), and currency effect (if applicable) in simple terms with examples.
Q: How do you ensure attribution analysis data is accurate?
Expected Answer: Should discuss data validation processes, reconciliation with other reports, and common red flags that might indicate calculation errors.
Junior Level Questions
Q: What is the purpose of attribution analysis?
Expected Answer: Should explain that it helps understand why a portfolio performed the way it did and which decisions contributed to or detracted from performance.
Q: What are the basic inputs needed for attribution analysis?
Expected Answer: Should mention portfolio returns, benchmark returns, portfolio weights, and benchmark weights as minimum requirements for basic analysis.
Experience Level Indicators
Junior (0-2 years)
- Basic performance calculation concepts
- Data collection and validation
- Report generation and distribution
- Understanding of financial markets basics
Mid (2-5 years)
- Advanced Excel and attribution systems
- Performance analysis interpretation
- Client reporting and communication
- Understanding of different attribution methodologies
Senior (5+ years)
- Complex multi-currency attribution
- Team management and training
- System implementation and methodology design
- Strategic analysis and recommendations
Red Flags to Watch For
- Inability to explain attribution concepts in simple terms
- Lack of attention to detail in calculations
- Poor understanding of basic investment concepts
- No experience with performance measurement standards
- Limited knowledge of financial markets
Related Terms
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