how is manager universes benchmark not specified in advance?

If I know who the median manager was during the year just ended, the benchmark is specified in advance for the year to come, isn’t it?

It is not specified in advanced because I don’t know who I’m comparing myself against until after the fact. Therefore, it isnt investable either!

R36 PP11: it says that the benchmark is in the top quartile of its peer group over the previous calendar year. Yet the correct answer says it is not specified in advance. How come I don’t know who was in the top quartile of my peer group over a past period? This evades me…

Your peer group is Bob, Mary, and George, and you’ll be compared to 2019’s median manager.

Are you going to be compared to Bob? Or Mary? Or George?

I get what you’re trying to say but as in the question I mentioned above, I would be compared to 2018’s median manager, which should be known now, at the beginning of 2019.

I’ve never seen a CFA Institute question in which a manager’s performance is compared to that of the previous year’s median manager. It’s always the current year’s median manager.

In the real world, comparing your performance to that of last year’s median manager (who might be the top manager this year, or the bottom) would be decidedly peculiar.

So . . . you’re correct, but it’ll never happen.

If you look at moringstar ratings, the 5 star managers last year are usually the 3 stars this year… and the 3 stars this year are 5 stars this year…

Maybe they’re lying about their style!

CFA Program Curriculum 2019 Level III Book 6, R36 PP11