1.6.16 TICCS® contributions
TICCS contributions to QoQ total return
For a given TICCS® pillar (e.g. business model), the contribution of a TICCS® category within it (e.g., contracted)at time t is computed as:
where
is the weight of asset i at time t,
is the QoQ total returns of asset i at time t,
n is the number of constituents in that TICCS® category
TICCS contributions to YoY total return
Just like the QoQ index total returns are compounded over 4 quarters to get to the YoY index total returns, the QoQ contribution for a given TICCS® category are compounded using the index QoQ index total returns to get to the YoY contributions.
where
is the QoQ total returns of the index at time t
Contributions expressed as percentages
The analytics described above are in absolute terms. Adding all the contributions across the categories of a TICCS® pillar results in the index total returns. However, they can also be expressed in percentage terms:
The same can be done with YoY contribution.