Separate the policy decision from timing and security selection.

Family Office Private Wealth Journal · Editorial research desk · 2 November 2026

Companion to Determinants of Portfolio Performance by Gary P. Brinson; L. Randolph Hood; Gilbert L. Beebower.

Decision in practice

Quarterly results beat policy because equities rose and the portfolio drifted overweight. The committee credits the equity selector.

Committee assignment

Reconcile policy return, allocation, selection, interaction and costs to the total net result; record which decisions were deliberate.

Record and decision rule

Investigate unexplained residuals before assigning performance credit or changing compensation.

Illustrative application by the editorial desk. The source authors did not evaluate or endorse this procedure.