Benchmarks Flashcards

1
Q

What are the three defined categories defined by the FCA?

A

Constraining Benchmark

Target Benchmark

Comparator Benchmark

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2
Q

What is the constraining benchmark?

A

Index or similar factor that fund managers use to limit or constrain how they construct a portfolio

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3
Q

What is the target benchmark?

A

Index or similar factor that is part of a target a fund manager has set for a funds performance to match or exceed.

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4
Q

What is the Comparator Benchmark?

A

Index or similar factor against which a fund manager invites investors to compare a funds performance.

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