ESMA_QA_731
29/03/2023
Subject Matter
Definition of a benchmark in relation to investment funds (ESMA70-145-114 Q&A_5.6)
Original 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?
ESMA Answer
05-02-2018
Original language
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.
Status: Answer Published
Additional Information
Level 1 Regulation
Benchmarks Regulation (BMR) - Regulation 2016/1011
Topic
Benchmarks Regulation