What type of analysis does macro attribution involve?

Macro attribution typically focuses on evaluating the performance of a portfolio in relation to broader economic factors and the overall market environment. This analysis seeks to understand how various economic conditions impact investment returns, thereby providing insights at a fund sponsor level. By analyzing performance through the lens of macroeconomic variables, investors can better understand the drivers of performance, such as market allocation or factor exposure, and assess whether the fund's performance is attributable to the fund manager's decisions or external market influences.

This context helps fund sponsors make informed decisions about fund management, strategy adjustments, and resource allocation based on a comprehensive understanding of how macroeconomic trends influence their investments.