Peer Group Benchmark
Peer Group Benchmark performance is calculated as follows:
- Utilizing the selected method (hypothetical or historical), we substitute the investment’s 1-month return with the median manager 1-mo return for the investment’s peer group that it held at that time.
- All other calculations are the exact same as previously described except we now are using median peer group returns instead of the investment returns. So, any outperformance of the model to this benchmark usually denotes that you have selected investments which have consistently outperformed the median of their peer groups.
The performance of the peer group benchmark is not an exact representation of any particular investment, as you cannot invest directly in an index or the peer group median manager that are used in the calculations.
Benchmark your models against indexes of your choosing. Configure index allocations over time to mirror changes in model allocations. For example, if you added a real estate investment to a portfolio at a certain point in time, you can add a real estate benchmark for that same time period.
To create your own blended benchmark, go to Application Management (gear icon in top right corner), and select blended benchmarks. Click '+NEW BENCHMARK' to create your own.
Name the benchmark and then add/choose a new data period. Finally use the search bar at the top of the screen to add indexes and input an allocation. Once completed, save the blended benchmark and add it to a new model. Blended benchmarks can also be added to already created models retroactively (Edit Model Details).