Comparison universe

Comparison universe,

Definition of Comparison universe:

  1. A comparison universe is a grouping of professionally managed investment portfolios or funds with similar mandates and objectives that serves as a benchmark for performance. That is, the performance of each managed portfolio or fund can be readily measured against the average for all members of the peer group.

  2. Lipper and Morningstar are the companies that create the most-used comparison universes.

  3. A set of analogous portfolio or investment managers with like investment styles used to rate the work of one manager from time to time and to preserve competitiveness. Some people think it is an ineffective measurement because the universes are too broad and biased to show a specific managers skill.

How to use Comparison universe in a sentence?

  1. A comparison universe is a grouping of similar professionally-managed funds created as a measure of the relative performance of each of its components.
  2. The comparison universe becomes a benchmark against which the professional manager's results are compared. The manager may match, exceed, or underperform the universe.
  3. Lipper and Morningstar are the two sources of comparison universes in the U.S.

Meaning of Comparison universe & Comparison universe Definition