Benchmarks Flashcards
1
Q
What are the three defined categories defined by the FCA?
A
Constraining Benchmark
Target Benchmark
Comparator Benchmark
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
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.
4
Q
What is the Comparator Benchmark?
A
Index or similar factor against which a fund manager invites investors to compare a funds performance.