Review of Fof performance targets

Almost one in five funds of funds (Fofs) are tracking benchmarks that intermediaries cannot independently verify. A survey conducted by MultiManager, sister publication to International Investment, which collected the performance targets of more than 200 Fof and manager of managers (Mom) portfolios, showed 17% of Fofs have a composite benchmark, while 44% are benchmarked against their sector average, and 36% against an index. One problem associated with composite benchmarks is they often mix indices from different providers. This means intermediaries rely on fund groups to provide perfor...