The estimated ARC Index results for November are now available.

Anchors Aweigh! - Limitations of Benchmarking


One of the most important decisions that an investor makes is the choice of benchmark used to represent the investment outcome that they are seeking to achieve. In behavioural science, the “anchoring bias” refers to the tendency to rely too heavily on the first piece of information offered. Benchmarks can act as a powerful anchor, constraining both the expectations of the client and the actions taken by a discretionary investment manager. This article examines the potential impact.

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