Policy Benchmarking: Best Practices for Private Investments

For investors with private allocations, how one incorporates them into the policy benchmark will materially impact the portfolio’s relative performance, making the choice key to informed decision making. In this report, we review various methodologies used and make a series of recommended best practices to follow. In considering the performance of private investments within the total portfolio, it is anchored to a set of core principles: keeping it simple, not treating private investments differently, and making performance evaluations as meaningful as possible.