You have been asked to evaluate returns from your commercial real estate investment fund (Bluestone Fund) against an industry benchmark index to determine how successful your active investment strategy has been. Specifically, a potential client wants you to compare the performance of your portfolio strategy against a passive strategy of simply investing based on the same proportions of properties and locations comprising the index. During the most current quarter, the following information has been provided to you based on property type and location: 1. Use the Brinson-Hood-Beebower (BHB) approach to calculate the extent to which the Bluestone Fund is over- or under-weighted by property type relative to the industry index. 2. Use the Brinson-Hood-Beebower (BHB) approach to calculate the extent to which the Bluestone Fund is over- or under-weighted by location/region relative to the industry index. 3. To what extent was the superior performance by Bluestone attributable to property selection versus allocation in (1)? 4. To what extent was the superior performance by Bluestone attributable to property selection versus allocation in (2)? 5. Use the Brinson-Fachler (BH) approach to calculate how Bluestone Funds return differed from the industry index due to differences in allocation by property type. Which property sectors seemed to help or hurt the fund's performance? 6. Use the Brinson-Fachler (BH) approach to calculate how Bluestone Funds return differed from the industry index due to differences in allocation by location. Which location sectors seemed to help or hurt the fund's performance? You have been asked to evaluate returns from your commercial real estate investment fund (Bluestone Fund) against an industry benchmark index to determine how successful your active investment strategy has been. Specifically, a potential client wants you to compare the performance of your portfolio strategy against a passive strategy of simply investing based on the same proportions of properties and locations comprising the index. During the most current quarter, the following information has been provided to you based on property type and location: 1. Use the Brinson-Hood-Beebower (BHB) approach to calculate the extent to which the Bluestone Fund is over- or under-weighted by property type relative to the industry index. 2. Use the Brinson-Hood-Beebower (BHB) approach to calculate the extent to which the Bluestone Fund is over- or under-weighted by location/region relative to the industry index. 3. To what extent was the superior performance by Bluestone attributable to property selection versus allocation in (1)? 4. To what extent was the superior performance by Bluestone attributable to property selection versus allocation in (2)? 5. Use the Brinson-Fachler (BH) approach to calculate how Bluestone Funds return differed from the industry index due to differences in allocation by property type. Which property sectors seemed to help or hurt the fund's performance? 6. Use the Brinson-Fachler (BH) approach to calculate how Bluestone Funds return differed from the industry index due to differences in allocation by location. Which location sectors seemed to help or hurt the fund's performance
