Benchmarks

Question 1

What are the three defined categories defined by the FCA?

Answer 1

Constraining Benchmark

Target Benchmark

Comparator Benchmark

Question 2

What is the constraining benchmark?

Answer 2

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

Question 3

What is the target benchmark?

Answer 3

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

Question 4

What is the Comparator Benchmark?

Answer 4

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