Institutional investors often base portfolio evaluations on benchmark comparisons which offer valuable perspective. However, over-reliance on benchmark measures, particularly over short periods, can lead to additional portfolio and investment modifications, as investors and their advisors overreact to the implicit signals from this type of analysis. It is important to carefully consider how to approach performance evaluation and the application of portfolio benchmarks.
Read the paper to learn why benchmarking is important, but not the only data investors should use to measure performance. This paper covers:
- Applying the correct time horizon
- Understanding what is being measured
- Strategies for appropriately applying benchmarks
The material included herein is based on the views of SIMC. Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results. This presentation should not be relied upon by the reader as research or investment advice (unless SIMC has otherwise separately entered into a written agreement for the provision of investment advice).
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