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top1000funds: The importance of the right benchmark
Publication date: 2021-03-01

A new paper by EDHECInfra argues that selecting the right benchmark could completely change investors’ preferred asset allocation to infrastructure equity and debt.

Asset allocation choices famously determine a significant proportion of investment outcomes, but as recent research shows, benchmark selection is an integral part of this process. For example, the authors of Benchmark selection and performance in the Journal of Pension Economics and Finance last year find that in the cross-section of pension funds, asset allocation explains on average only 19 per cent of the variation in pension fund returns while benchmark selection dominates and explains 33 per cent of cross-sectional returns.

Read the full article here.


top1000funds: The importance of the right benchmark