Hello everyone, for this week;s blog, I would like to discuss some of the findings that I found in my portfolio. Attached with a picture of the attribution function from bloomberg to further explain my findings.
First of all, my portfolio return at the moment is 1.12%, but it shows the benchmark's return (DJIA) as 1.32%, therefore, an active return of -0.20% was obtained in my portfolio. Also, the -0.20% return was attributed by -0.45% from allocation choice, 0.41% of selection ability, -0.16% of currency situation.
As you can see from the graph, in the consumer discretionary sector, a loss is noticeable and it is due to the poor selection ability. In term of health care sector, all allocation choice, selection ability, and currency situation contributed to the loss of the stocks.
In the bright side, in the information technology sector, a huge profit is gained due to the brilliant selection of the sectors and currency situation. In the consumer staples sector, even with the slight poor performance on allocation choice and currency situation, a huge profit is obtained because of the brilliant selection ability.
Further investigation on the performance would be conducted in the following week. And hopefully the performance of the portfolio would be improved.
Happy St.Patrick's Day!
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