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Questions

Which term does the AMF recommend using when the reference framework does not meet all the expected construction standards of an index as defined by the BMR regulation?

Index

Indicator

Benchmark

Reference framework

Which article of the BMR regulation requires the drafting and maintenance of written continuity plans for benchmark indices?

Article 20

Article 25

Article 28

Article 30

What information must be included in the KIID regarding benchmark indices according to the ESMA Q&A of March 2019?

Only the name of the index used

Whether the management is active or passive, the definition of index-referenced management, and the degree of freedom relative to the indicator

Management fees and past performance

The main risks associated with the fund

What are the cumulative criteria for selecting an appropriate benchmark index according to AMF position DOC-2011-05?

Representativeness, measurability, unambiguity, appropriateness, investability, transparency

Historical performance, liquidity, cost, accessibility

Dividend, volatility, beta, alpha

Company size, sector, geographic area, capitalization

The arithmetic performance differential is preferable for multi-period comparisons.

True

False

The arithmetic method is always more precise than the geometric method for comparing performance over a single period.

True

False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Drafting written continuity plans

Using the term 'indicator' for non-compliant reference frameworks

Verifying index administrators on the ESMA register

Defining the concept of index-referenced management in the KIID

Categories:

Benchmark regulation obligations

AMF recommendations

(1+Rf)/(1+Rb)-1

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