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Contribution

The Contribution column, as it appears on the Position Performance and Performance Attribution reports, is a form of performance attribution that explains how much a position has contributed to the total return for the requested period. The sum of position-level contribution is equal to total return. Contribution is calculated differently for TWR and IRR. Here is how Contribution is calculated for both: 

Calculation With TWR

To calculate Contribution using TWR, these are the steps used: 

1. Compute a daily position-level contribution factor: 

2. Compute the daily position-level contribution: 

3. Compute the daily adjusted contribution: 

^*

^*Cumulative Return for Remaining Periods is the cumulative TWR for all days after the current date. This value is zero on the last day of calculation.

4. Compute the cumulative position-level contribution: 

Calculation With IRR

To calculate Contribution using IRR, these are the steps used: 

1. Compute cumulative IRR for all categories using existing calculations.

2. Compute investment gain for all categories using existing calculations.

3. Compute Contribution using this equation: 

Annualized Contribution