25 years: Investment management
In the previous video, Ali explained why performance attribution is important for an asset management firm. He also outlined a few examples and how we interpret them. In this video, he goes deeper into some of the theories behind these performance attribution reports and how they are constructed.
In the previous video, Ali explained why performance attribution is important for an asset management firm. He also outlined a few examples and how we interpret them. In this video, he goes deeper into some of the theories behind these performance attribution reports and how they are constructed.
11 mins 20 secs
There are several different models that can be used for performance attribution, one of which is the Brinson, Hood, Beebower model, more commonly known as just the Brinson model. It is specifically suited for use when the portfolio is measured against a specific benchmark and it focuses on stock selection and asset allocation.
Key learning objectives:
Outline how the Brinson model was developed and what it can be used for
Understand the maths behind the model
Outline the pros and cons of the model