|
Sector |
Portfolio Weighting |
(2) S&P Weighting |
(3) Differences in Weighting |
(4) Portfolio Return |
(5) S&P Return |
(6) Sector Over- or Under Performance |
(7) = (3) x (6) Sector Allocation Contributions |
|
Telecommunications Services |
3.10% |
5.90% |
A. (2.80%) |
2.50% |
3.10% |
K. (-0.60%) |
U. (-1.68%) |
|
Utilities |
7.50% |
3.80% |
B. 3.70% |
3.10% |
1.90% |
L. 1.20% |
V. 4.44% |
|
Information Technology |
14.30% |
17.90% |
C. (-3.60%) |
4.90% |
3.20% |
M. 1.70% |
W. (6.12%) |
|
Materials |
6.30% |
3.70% |
D. 2.60% |
4.80% |
5.10% |
N. (-0.50%) |
X. (1.30%) |
|
Financials |
13.40% |
17.10% |
E. (-3.70%) |
6.20% |
4.80% |
O. 1.40% |
Y. (5.18%) |
|
Consumer Discretionary |
12.70% |
13.50% |
F. (-0.80%) |
2.10% |
4.00% |
P. (-1.90%) |
Z. 1.52% |
|
Industrials |
14.10% |
11.90% |
G. 2.20% |
4.90% |
3.10% |
Q. 1.80% |
AA. 3.96% |
|
Energy |
8.40% |
8.00% |
H. 0.40% |
3.70% |
8.60% |
R. (-4.90%) |
BB. (-1.96%) |
|
Healthcare |
15.30% |
11.70% |
I. 3.60% |
9.80% |
5.70% |
S. 4.10% |
CC. 14.76% |
|
Consumer Staples |
4.90% |
6.50% |
J. (-1.60%) |
1.50% |
13.20% |
T. (-11.70%) |
DD. 18.72% |
4. Which sector made the greatest negative contribution to the portfolio’s performance? Explain why this investment made the greatest negative contribution based on the differences in weighting and the sector over- or under- performance.
The portfolio's performance was impacted most negatively by the contribution of the Information Technology sector as is observed from the corresponding value of - 6.12 % in the last column. This happens on account of the significant difference in the share of the IT Sector in the S&P weighting and that of the portfolio, Even though the IT Sector marginally out-performs the S&P, it's much lower weighting in the portfolio leads to a larger negative contribution to the portfolio's performance. Hence, the negative contribution can be attributed majorly to a difference in weighting.
Sector Portfolio Weighting (2) S&P Weighting (3) Differences in Weighting (4) Portfolio Return (5) S&P Return...
S Sector Portfolio Weighting (2) S&P Weighting (3) Differences in Weighting (4) Portfolio Return (5) S&P Return (6) Sector Over- or Under Performance (7) = (3) x (6) Sector Allocation Contributions T Telecommunications Services 3.10% 5.90% A. (2.80%) 2.50% 3.10% K. (-0.60%) U. (-1.68%) U Utilities 7.50% 3.80% B. 3.70% 3.10% 1.90% L. 1.20% V. 4.44% I Information Tech 14.30% 17.90% C. (-3.60%) 4.90% 3.20% M. 1.70% W. (6.12%) Materials 6.30% 3.70% D. 2.60% 4.80% 5.10% N. (-0.50%) X. (1.30%)...
-Did the performance turned in by the investment manager underperform or outperform the S&P 500? By how much? Show your work. Sector Portfolio Weighting (2) S&P Weighting (3) Differences in Weighting (4) Portfolio Return (5) S&P Return (6) Sector Over- or Under Performance (7) = (3) x (6) Sector Allocation Contributions Telecommunications Services 3.10% 5.90% A. (2.80%) 2.50% 3.10% K. (-0.60%) U. (-1.68%) Utilities 7.50% 3.80% B. 3.70% 3.10% 1.90% L. 1.20% V. 4.44% Information Technology 14.30% 17.90% C. (-3.60%)...
Fill in the missing values in the table above for a quarterly comparison of sectors with the S&P 500 Index. Remember when performing calculations that the numbers shown are percentage values. Record your answers as percentage values to two decimal places. Sector Portfolio Weighting (2) S&P Weighting (3) Differences in Weighting (4) Portfolio Return (5) S&P Return (6) Sector Over- or Under Performance (7) = (3) x (6) Sector Allocation Contributions Telecommunications Services 3.10% 5.90% A 2.50% 3.10% K U...