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Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
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Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
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Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
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Introduction to Performance Attribution Models
Ali Chabaane
25 years: Investment management
In this video, Ali covers some basic ideas within the area of performance attribution, including who within the investment management industry might make use of this tool and what specific information they might glean from it.
In this video, Ali covers some basic ideas within the area of performance attribution, including who within the investment management industry might make use of this tool and what specific information they might glean from it.
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Introduction to Performance Attribution Models
9 mins 38 secs
Investment professionals need to understand how they have generated performance, where it has come from and what they can do better in the future, this is the purpose of using performance attribution tools. This can be conducted in different ways, each of which allows us to dissect the performance of different types of decisions. Various market participants use the insights provided by performance attribution including portfolio managers, marketing and sales teams, regulatory teams and investors.
Key learning objectives:
Understand why it is important to analyse performance and who conducts the analysis
Outline who uses the information provided by performance attribution
Understand how to interpret the outcomes and how they can be used
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Why is it important to analyse performance and who performs the analysis?
Lots of investment decisions need to be made in order to achieve top-level performance. They therefore need to be able to understand how each of these decisions contributed to the portfolio performance.
Performance attribution is the process of using a set of mathematical models and numerical procedures to dissect the portfolio performance, in order to identify the sources of return and to relate them to decisions made by the portfolio manager.
The analysis is performed by Performance Analysts who are highly specialised experts in financial mathematics, portfolio and complex data management. Performance Analysts need to be able to provide the portfolio manager with unbiased feedback on what decisions worked and how to go about adjusting the portfolio using the information.
Who uses the information provided by performance attribution?
- Portfolio managers - To understand sources of generated performance and relate their decisions to achieved outcomes
- Marketing and sales teams - To build the confidence of an existing or prospective investor
- Teams with fiduciary responsibilities - Ensure regulatory oversight is carried out by monitoring sources of generated performance are inline with the stated mandate.
- Investors - Helps to identify sources of performance and assess how good the portfolio manager is.
How are the outcomes of attribution interpreted?
The chart shows the performance attribution of an equity portfolio across sectors decomposed into allocation and stock selection decisions. The first three columns show how the weights of the portfolio deviate from those of the benchmark. The next four columns’ attribution section of the table provides a decomposition of the realised return within each sector into three components: allocation, stock selection and interaction. The portfolio manager’s performance was mainly due to stock selection. The allocation decisions have not added value.
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Ali Chabaane
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