Target Allocation Benchmark

The aim of Target Allocation Benchmarks (TAB) is to allow selection of separate benchmark indices for each segment of the portfolio, as per selected classification. For example, a TAB broken down by GICS sectors would allow a benchmark for each applicable sector, while a portfolio broken down by currency would allow a separate benchmark for EUR, GBP, USD etc. TAB allows monitoring portfolio sectors’ performance against the most relevant benchmarks. In an example of multi-currency portfolio, the GBP stocks could be compared against FTSE 100, the European stocks against MSCI Europe, and Japanese ones against Nikkei 225. This analysis makes it easier and more quantifiable to capture relative performance of individual portfolio sectors.

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