Performance objectives and Benchmarks
A - Minimum compliance
- Funds are required to disclose fund performance against the performance objective (eg peer group benchmark, absolute return target), both measures being calculated by the same methodology.
- Each fund should use its “benchmark” consistently over time: a full explanation should be supplied should it become necessary for a benchmark to be changed.
B - Best practice
- Funds should make available their performance against a suitable sub-set of peer group funds from the PFI.
- Funds should compare their ESG performance against peer group funds. AREF’s preferred ESG performance measurement service is the Global Real Estate Sustainability Benchmark (GRESB) although it is recognised that not all funds may be able to participate in it.