ESMA · ESMA_QA_731 Answer Published

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

Name: Definition of a benchmark in relation to investment funds (ESMA70-145-114 Q&A_5.6): ESMA Q&A — EU Financial Regulatory Q&A
Creator: European Securities and Markets Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Benchmarks Regulation (BMR) - Regulation 2016/1011
Topic: Benchmarks Regulation
Submitted: 2023-03-29
Answered: 2018-02-05

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Question

Does the use of a benchmark to measure the performance of an investment fund include the sole mentioning of an index as a comparison?

Answer

No. ESMA considers that indices referenced in the documentation of an investment fund solely to compare the performance of the investment fund should not be included in the scope of this definition, where no investment constraint on the asset allocation of the portfolio is established in relation to the index. This is without prejudice to other European or national rules governing the mentioning of indices in fund documentation.

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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.

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