Returns vs benchmarks

I recall reading this in either book 2 or 3, but I forget the term. Or maybe I read this in another place in the same time I was reading book 2 or 3. You know how it goes… when you are studying cfa, you’re not sure what is real life anymore.

If you are a pension fund and you have 4 asset classes, and you decide to allocate each at 25%. You compare each asset class with a benchmark. But you need to benchmark yourself to see if your 25% allocation to each asset class was good.

Is there a term or phrase that determines if your 25% allocation is correct?

There’s an overall (i.e., portfolio level) benchmark, and then, possibly, style benchmarks for each asset class.

Is that, perhaps, what you were thinking?

Not quite. I’m going through my notes and I’ll post when I find it.

i’m not quite sure I follow your question. Are you talking about active management, active tilts away from the benchmark based on your management views?