What exactly is a Median Fund? And what is a Median Tracker? These terms are mentioned in the study material but I could find no helpful explanation. It would be great if you could give an insight into what these are and how they work. Thanks in advance!
Sorry for the late reply. My feeling is that a "median fund" is one whose performance, according to the external performance monitoring companies, is about average relative to its peer group. All companies who manage funds are placed in league tables and they compete with other funds that are labelled as having a "similar" benchmark or goal. The top quartile are the good ones, the median funds are teh average ones. (But past performance does not indicate ....). Similarly a median tracker would be one that achieves average tracking error rather than extremely low tracking error, although I havent heard of this in the past.
