endowment has a special division to manage alternative assets. The table below shows the Investment Policy Allocations for the Alternative Asset Portfolio divided between Real Estate and Venture Capital/Private Equity along with the suggested benchmark

Asset Category Policy Allocation Benchmark

VC/Private Equity 80% Manager Universe

Manager 1 60% Technology & Pharma

Manager 2 40% Fin Tech

Real Estate 20% US Commercial Real Estate Index

Domestic Real Estate 60% US Real Estate and Mortgage

Global Real Estate 40% Global Commercial RE

Total Fund 100% .

The data for the account valuation and return reported in the table below. The risk free rate during the time is 0.5%. All asset values reported in units of 1,000. VC/PE = Venture Capital/Private Equity and RE = Real Estate.

Asset Category Beginning Value Ending Value Net Cashflow Actual Return Benchmark Return

VC/PE 200,000 252,000 10,000 20.0 18.0

Manager 1 130,000 174,000 20,000 18.46 20.00

Manager 2 70,000 78,000 (10,000) 30.00 15.00

Real Estate 50,000 55,000 0 10.00 12.00

Mgr. Domestic 30,000 34,000 0 13.33 10.00

Mgr. Global RE 20,000 21,000 0 5.00 15.00

Total Fund 250,000 307,000 10,000 18.08 20.40

1. Conduct the macro attribution analysis of the portfolio results and comment on each attribution.

2. Based on the information provided, comment on appropriateness of each benchmark and your concerns if you were the portfolio manager for each of the fund.