Return Attribution
Return Attribution is a way to understand why an investment portfolio performed the way it did. It's like a detailed receipt that shows which investment decisions helped or hurt the overall returns. Investment managers use this to explain to clients what worked and what didn't in their investment strategy. For example, it can show whether success came from picking good stocks, choosing the right time to invest, or investing in the right industries. This helps both managers and clients understand if good results came from skill or just luck.
Examples in Resumes
Performed Return Attribution analysis for $2B equity portfolio to identify key performance drivers
Created monthly Performance Attribution reports for institutional clients
Led team implementing new Attribution Analysis system for multi-asset portfolios
Typical job title: "Performance Attribution Analysts"
Also try searching for:
Where to Find Performance Attribution Analysts
Professional Organizations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How would you explain return attribution results to a non-technical client?
Expected Answer: Should demonstrate ability to break down complex attribution results into simple, actionable insights that clients can understand, using clear examples and avoiding technical jargon.
Q: What challenges have you faced implementing attribution systems across different asset classes?
Expected Answer: Should discuss practical experience dealing with various investment types, data quality issues, and system integration challenges, showing how they overcame these obstacles.
Mid Level Questions
Q: What are the key components of a good attribution report?
Expected Answer: Should mention clear presentation of allocation effects, selection effects, currency impacts if applicable, and meaningful commentary that explains the numbers in context.
Q: How do you validate attribution results?
Expected Answer: Should explain basic checks like ensuring numbers match performance returns, identifying unusual patterns, and verifying calculations against other sources.
Junior Level Questions
Q: What is the difference between allocation effect and selection effect?
Expected Answer: Should explain that allocation effect shows how asset class or sector decisions impacted returns, while selection effect shows how specific investment choices within those categories performed.
Q: How do you gather data for attribution analysis?
Expected Answer: Should demonstrate understanding of basic data sources like portfolio management systems, benchmark providers, and market data services.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of investment returns
- Data collection and verification
- Report generation
- Excel and basic analysis tools
Mid (2-5 years)
- Advanced attribution methodologies
- Client reporting and communication
- Performance system management
- Multi-currency analysis
Senior (5+ years)
- Complex attribution models
- Team leadership
- System implementation
- Strategic analysis and recommendations
Red Flags to Watch For
- Unable to explain attribution concepts in simple terms
- Lack of experience with performance measurement standards
- Poor understanding of investment products and markets
- No experience with attribution software or systems
Related Terms
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