Normal portfolio

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Normal portfolio

A customized benchmark that includes all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio.

Normal Portfolio

The portfolio of investments a money manager ordinarily makes. If a money manager deviates from his/her investment strategy at any given time for any reason, a normal portfolio is useful to help the money manager (or his/her client) determine how the investments would have performed had he/she simply used his/her usual strategy. See also: Benchmark.
References in periodicals archive ?
He believes in active management and was one of the first pension fund officers to espouse normal portfolios and performance fees.
The essay, "How Sponsors Can Use Normal Portfolios," by Arjun Divecha and Richard C.
Several of the essays discuss the use of benchmark or normal portfolios in investment management.