The benchmarks assigned to the client’s existing portfolios – especially for fixed income mandates – did not reflect true portfolio risk. They were either too narrow (for example, risk free yield plus a risk margin) or too generic, not providing enough insight into the investment performance and appraisal process. The client also suffered from a wide range of index options and intricacies in their methodology, making it difficult to determine best fit.
The client looked to us for help in the evaluation of its benchmark selection and assignment process to ensure benchmarks were best-fit to the respective the mandates.
