ESMA · ESMA_QA_729 Answer Published

Definition of a benchmark in relation to investment funds (ESMA70-145-114 Q&A_5.4)

Regulation
Benchmarks Regulation (BMR) - Regulation 2016/1011
Topic
Benchmarks Regulation
Submitted
2023-03-29
Answered
2018-02-05
More Q&As on this regulation →

Question

What types of investment funds are considered to be using an index for the purpose of “tracking the return of [an] index”?

Answer

Article 3(1)(3) of the BMR defines a benchmark, inter alia, as an index that is used to measure the performance of an investment fund with the purpose of tracking the return of such index. ESMA considers that investment funds using indices to measure their performance with the purpose of tracking the return of such indices include: investment funds the strategy of which is to replicate or track the performances of an index or indices e.g. through synthetic or physical replication; and structured investment funds that provide investors with algorithm-based payoffs that are linked to the performance, or to the realisation of price changes or other conditions, of indices.
View original on European Securities and Markets Authority ↗

This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

Similar Q&As

Definition of a benchmark in relation to investment funds (ESMA70-145-114 Q&A_5.5)

Answered 2018-02-05

Definition of a benchmark in relation to investment funds (ESMA70-145-114 Q&A_5.6)

Answered 2018-02-05

Use of benchmarks in certificates (ESMA70-145-114 Q&A_5.9)

Answered 2018-09-26

Use of a benchmark (ESMA70-145-114 Q&A_5.2)

Answered 2017-09-29

Application of the Regulation outside the EU (ESMA70-145-114 Q&A_4.4)

Answered 2023-12-15

More Q&As on this topic

Application of the Regulation outside the EU (ESMA70-145-114 Q&A_4.4)

Answered 2023-12-15

Transitional provisions applicable to third country benchmarks (ESMA 70-145-114 Q&A9.3)

Answered 2023-12-15

The legal representative under Article 32(3) of BMR (ESMA70-145-114_Q&A 7.7)

Answered 2023-03-31

Readily available data

Answered 2022-06-23

Scope of the Benchmark Regulation (ESMA70-145-114 Q&As BMR - Q&A 4.7)

Answered 2021-07-29

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.