A customised benchmark uses any investor's choice of TICCS® weights to create an index that matches specific segments of the universe
An example of customised benchmark would be:
- TICCS® pillar 1: 30% contracted, 70% merchant,
- TICCS® pillar 2: 25% transport, 30% renewables, 45% utilities,
- TICCS® pillar 4: 70% corporates, 30% project finance
Such custom weights can be static or defined dynamically over time.
Things to consider
A custom benchmark can represent historical fund exposures or be used as a forward looking benchmark.