Why benchmark selection is a form of client communication

Many advisers use collective investment funds for their clients’ investment needs. In many cases, these are managed relative to some stated benchmark index, although others may have “cash-plus” or absolute return targets. Equally client portfolios may be measured against indices (or composite indices) adjudged to represent their investment needs and risk profile.

This article explores some requirements for the selection of suitable benchmark indices and outlines how advisers can be on the alert for some fund management practice where published benchmarks can be misleading to investors.

Q G Rayer (2018), Why benchmark selection is a form of client communication, DISCUS, available at http://discus.org.uk/benchmark-selection/, 4 pages, 21 June 2018.

pdf download

 

Download Article