mp3bu

yellayella Wrote:
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> what's the purpose of the custom securty-based
> benchmark.
>
> does it contain exactley the same wheightings as
> the manager ?
>
> construction steps are as follows:
> 1) identify the managers investment process, asset
> allocation and weighting
> 2) use the same assets and weightings for the
> benchmark
> 3) assess and rebalance the benchmark on a
> predetermined schedule
>
> if the benchmark is built with the same weightings
> and assets - how do you see outperformance???
>
> thanks


When managers deviate from the said benchmark (between the predetermined rebalancing schedule) as the case with other benchmarks.