Set Up Entities for Multi-Manager Attribution

When you set up entities for use with multi-manager attribution analysis, you use Performance Composites type entities (ACOMs) or COMPs for the upper entity hierarchy levels and you use Portfolio entities (PORT) for the lowest entity hierarchy level that represents individual managers.

The following table illustrates the entities used for a sample Multi-Manager account.

This table shows the entities created for an entity hierarchy with three levels:

• The top level is the Plan level, which contains Total Plan A. Total Plan A is a composite of composites. You define Total Plan A as an ACOM or COMP type entity.

• The middle level is the Asset Class level. Plan A is comprised of two asset classes, Equity and Fixed Income. You define each asset class as an ACOM type entity. The Asset Class level contains two ACOMs or COMPs, Equity and Fixed Income.

• The bottom level is the Manager level. The Equity asset class is comprised of the Manager A account and the Manager B account. The Fixed Income asset class is comprised of the Manager C account and the Manager D account. The Equity composite includes two Portfolio type entities, Manager A and Manager B. The Fixed Income composite includes two Portfolio type entities, Manager C and Manager D.

You use ACOM or COMP type composites for multi-manager entity hierarchy structures rather than Composite type composites because the Entity Hierarchy can track Manager entities that move in and out of the composite only if you define those composites as ACOMs or COMPs.

Also perform benchmark assignments for these entities. If you only intend to report on Plan contribution, you still need to assign benchmark entities to the constituent entities of the Plan composite, as doing so is required by the attribution analysis engine. So, be sure to assign benchmark entities for all constituent entities of the Plan composite.