"Applying an attribution model is not that difficult; being able to capture the actual investment decisions and understanding what is going on in the portfolio that is the real challenge”.
Invited by The Spaulding Group, Inc., Elske van de Burgt, Managing Director Ortec Finance Investment Management presented on Multi-Asset Attribution on April 24.
Around 50 specialists from around the world joined the webinar. Elske presented Ortec Finance’s approach on dealing with Multi-Asset Attribution.
Due to COVID-19, investors are faced with huge volatility that can lead to large changes in their portfolios. This presentation gives a framework to capture these changes and quantify the quality of the decisions that initiated them. Questions like did your rebalance strategy play out well, did the hedging serve its purpose, did managers stay within their mandates – can all be addressed via attribution analysis. More specifically by a decision-based approach to Multi-Asset Attribution.
"Whenever you make investment decisions you have a purpose in mind. This means you need to assess whether or not this attempt was successful - and if you have been sufficiently rewarded for any risk you took. This is obviously where performance attribution can help out.”
More about our approach can be found in the 2013 insight on Performance Attribution using a Decision Hierarchy Approach. We have incorporated this methodology in our PEARL software that is used by many multi-asset investors around the globe.
Want to know more about how Ortec Finance deals with your multi-asset attribution challenges? See here or contact Elske or Maurits.