A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Benchmark: a reference index used to judge the performance of a security or a portfolio.
Benchmarked management: as its name indicates, benchmarked management aims for a performance close to or superior to that of the benchmark chosen and that this should be the process for the selection of securities within the benchmark.
The definition of a benchmark also serves equally well in defining the investment universe as in assessing the performance. The outperformance objective is often accompanied by a "tracking error" that allows for the risk taken compared to the benchmark to be measured.
Beta: describes the magnitude of the variation in a fund’s performance compared to that of its reference index. The benchmark (representing the market) will always have a beta of 1 because it varies in line with itself. A fund with a beta higher than 1 indicate a more significant potential for gain, but also a higher degree of risk. If the beta is lower than 1 this indicates a less significant potential for gain but also a lower degree of risk.
Bluechip: indicates the largest companies in terms of market capitalisation on a stock exchange. One often contrasts the term blue chip with small cap.
Bond: Security representative of a loan obligation by an issuer of short, medium or long-term duration.