Berk is evaluating a small cap active fund that is benchmarked to the ASX Small Ordinaries. The ASX Small Ords (short for Ordinaries) consists of the smallest 200 firms in the ASX 300. The ASX 300 is an index of the largest 300 firms listed on the Australian market. Berk gathers the index's sector allocation for the last 2 quarters as well as the allocation for the fund for the first quarter to see if the fund manager was an active fund manager and if the fund manager had correctly forecasted the sectors that would better and worse. Industry Sector BM (Q2) BM (Q1) Fund (Q1) Materials 22.07 24.63 24.9 Industrials 7.23 6.94 14.85 Health Care 5.99 5.09 12.22 Information Technology 9.19 8.35 12.89 Consumer Discretionary 13.03 12.42 7.96 Consumer Staples 5 5.18 6.06 Communications 5.17 6.07 5.53 Energy 5.41 6.66 2.98 Financials (ex Property Trusts) 11.81 10.19 2.21 Real Estate 15.1 14.47 10.4 Required: a) Which sectors did the fund manager predict correctly and which sectors did he make an incorrect prediction? Fund manager's sector allocation compared with BM Q1 sector allocation, and the difference between BM Q1 to Q2 change will provide you with the information. b) Explain if the fund manager performed better or worse than the BM over the quarter? Please do not include transaction costs or management fee