Use the following information regarding the performance of a fund manager in a recent quarter to answer the following questions. The table shows the actual return for each asset in the managed portfolio, the allocation to each asset group in the managed portfolio, the benchmark/neutral sector allocations in each asset group, and the index return of each asset group.

	Actual return	Actual weight	Benchmark weight	Index return
Equity	9.5%	0.55	0.70	8.0% (S&P 500)
Bond	2.9%	0.30	0.20	4.1% (Salomon index)
Cash	0.5%	0.15	0.10	0.5%

(a) What is the managers return in the quarter? Did the manager overperform or underperform? (4 marks) (b) What is the contribution both asset allocation and security selection to relative total over- or under-performance? (11 marks)