Skip to content

Discussion note on benchmark design for an active investment process

26 November 2014

Norges Bank Investment Management has published a Discussion Note on benchmark design for an active investment process.

Most equity funds are benchmarked to market capitalization weighted indices. In this note, we introduce a flexible modelling framework that can be used when designing diversified sector benchmarks which better exploit the active portfolio manager’s stock picking skills while offering investment capacity.

Read the Discussion Note.