What benchmarks do GBIM use?
We aim to achieve clients’ investment objectives within the timescale and benchmarks defined by the risk tolerance agreed. Verifiable benchmarks help to measure progress.
Many portfolios will be compared to the Growth, Balanced and Income benchmarks defined by the Association of Private Client Investment Managers (APCIMS). Other portfolios will have a composite benchmark agreed at inception. For example, a portfolio with a lower level of risk may have a composite benchmark based on 25% in each of: starting 12 months LIBID; FTSE 0-5 years gilts index; IPD General Index; HFR Conservative Index.
When clients wish us to have market-linked performance benchmarks, these are generally monitored on a three year rolling basis, and not based on shorter term criteria.
We have the flexibility to use actual weightings that vary from the benchmark weightings and at times these variances may be significant.