Attribution Analysis of Fund A’s Sector Performance

A mutual fund manager, Fund A, has been evaluated for its performance over the past year. Fund A returned 12%, while the benchmark index returned 10%. The fund manager utilizes a strategy based on sector rotation, shifting allocations among various industry sectors based on market conditions. Over the year, Fund A had the following sector allocations and returns:

• Technology: 30% allocation; sector return: 15%
• Healthcare: 25% allocation; sector return: 8%
• Financials: 20% allocation; sector return: 10%
• Consumer Discretionary: 15% allocation; sector return: 12%
• Utilities: 10% allocation; sector return: 5%

Calculate the contribution of each sector to Fund A's performance, and assess how well the fund manager’s sector allocation contributed to the overall outperformance against the benchmark. Additionally, provide a brief commentary on the implications of your findings for the investment strategy.