Why equity benchmarking matters in multi-asset portfolios

Setting a strategic asset allocation, and benchmarks to represent it, is key in driving multi-asset portfolio outcomes. The choice of benchmark plays a central role in shaping portfolio exposures, setting client expectations, and assessing performance outcomes over the long term. T. Rowe Price typically uses market-capitalisation global equity measures such as the MSCI All Country World Index (ACWI) as the reference point for equity exposure within multi-asset portfolios for UK clients. Why is it important to take a global approach to benchmarking? What are the key challenges facing investors...