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investment strategy

M

MariDav

Member
What is the difference between a matched benchmark and a strategic benchmark?
 
MariDav said:
What is the difference between a matched benchmark and a strategic benchmark?
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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
 
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