Benchmark Index Comparisons
- Topics:
- Commercial Lending
- Tags:
- Asset Management,
- Operational Planning,
- Investment,
- Indice,
- Index,
- Financial Services,
- Finance,
- Equity,
- Business Operations,
- State Street
- Source:
- State Street
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Overview: In the US, plan sponsors, consultants, and investment managers have thoroughly dissected the many popular and well-known US equity indices with the goal of determining the most appropriate benchmark for asset allocation and performance measurement. However, in the case of global equity indices, this exercise is less common. This article seeks to compare and contrast the four most commonly used indices: the Morgan Stanley Capital International World Index, the FTSE All World Index, the Salomon Smith Barney Global Equity Index, and the Dow Jones Global Index. It concludes that Characteristics of a good benchmark include: The index should track the target asset classes, The index should include all opportunities realistically available to investors, The index should be investable/buyable to all market participants, Turnover should be kept to a minimum, and changes should be well understood and predictable, There should be a clear set of rules governing security inclusion and exclusion.
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Format: PDF | Date: Jun 2002 | Pages: 1
