Investor demand for customised benchmarks on the rise

A new Tabb Group report, Performance anxiety: A buy-side study of benchmarks and the investment process, anticipates that by 2009, 70% of pension fund managers with $40 trillion in combined assets, will utilise customised benchmarks as they consider more sophisticated methods of asset allocation and portfolio construction.

As these more complex per-formance measurement practices take hold, institutional investors are increasing exposures to exchange-traded and over-the-counter derivatives to