[Verse 1] Portfolio managers make their calls Picking sectors, stocks through market halls But how do we know if they're truly skilled Or just got lucky when returns were filled The Brinson model breaks it down Three effects that can be found [Chorus] Allocation, Selection, Interaction too A-S-I, that's what we do Brinson shows us where returns come from Did they pick the right sectors, did they pick the right ones Allocation, Selection, Interaction true Breaking down performance through and through [Verse 2] Allocation effect is sector weight Did they bet big where returns were great Portfolio weights minus benchmark share Times the benchmark return that's there If they overweight the winning space This effect puts returns in place [Chorus] Allocation, Selection, Interaction too A-S-I, that's what we do Brinson shows us where returns come from Did they pick the right sectors, did they pick the right ones Allocation, Selection, Interaction true Breaking down performance through and through [Verse 3] Selection effect is stock picking power Within each sector, their finest hour Benchmark weights times the difference clear Portfolio return minus benchmark here Did their stocks outperform the rest This effect puts skill to test [Bridge] Interaction is the combined play When allocation and selection both pay Active weights times active returns Where the double benefit turns All three effects must sum complete To total active return we meet [Chorus] Allocation, Selection, Interaction too A-S-I, that's what we do Brinson shows us where returns come from Did they pick the right sectors, did they pick the right ones Allocation, Selection, Interaction true Breaking down performance through and through [Outro] Now you know the Brinson way Attribution clear as day Manager skill or lucky break Brinson model shows what's fake
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