Performance attribution is a mechanism by which the investment management process can be assessed. It allows the performance analyst to explain the source of added value of actively managed portfolios against their passive mandate. To be of any use, the performance attribution process must abide by certain rules; otherwise the attribution and analysis will generate results leading to misinterpretation. Just like having a benchmark that is representative of the investment mandate, having a performance attribution methodology that is representative of the investment management process is equally important.

Thinking Through Fixed Income Attribution- Reflections From A Group of French Practitioners