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investment strategy

Discussion in 'CA1' started by MariDav, Sep 18, 2015.

  1. MariDav

    MariDav Member

    What is the difference between a matched benchmark and a strategic benchmark?
     
    MariDav, Sep 18, 2015
    #1
  2. Oxymoron

    Oxymoron Ton up Member

    Matched benchmark is used in a passive strategy, where the objective is to entirely replicate the movements in liabilities.

    Strategic benchmark is used in an active strategy, where the investment "norm" is set based on a theoretically matched benchmark and deviation to that based risk appetite, investment return expectation, fund manager politics etc.

    Strategic benchmark in a sense is matched benchmark + deviation of the norm from matched benchmark
     
    Oxymoron, Sep 18, 2015
    #2

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