How is the performance of segregated funds typically tracked?

The performance of segregated funds is typically tracked through benchmark comparisons and performance assessments against similar products. This approach allows for an objective evaluation of how a segregated fund is performing in relation to its peers and established market indexes. Benchmarks provide a standard against which the fund's performance can be measured, offering insights into whether the fund is managing to deliver returns that align with investor expectations and market conditions.

In this context, comparing a fund's performance to similar products helps investors understand its relative strength, risk level, and overall effectiveness within a specific investment category. Such analyses are crucial for making informed decisions about whether to invest in, hold, or divest from a particular segregated fund, ensuring a more data-driven investment strategy.