Benchmark


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.

Benchmark

The performance of a predetermined set of securities, used for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.

Benchmark

A standard against which a security's performance is compared. A benchmark is usually an index of securities of the same or similar class. Stocks are usually compared against stocks; bonds against bonds, etc. Another type of benchmark considers securities according to industry: a telecommunications stock may be compared to other telecommunications stocks. Likewise, mid-cap securities may be benchmarked against other mid-cap securities. Some indices, such as the Dow Jones Industrial Average and the S&P 500, are considered to be benchmarks for the wider economy.

benchmark

A standard by which something is measured. For example, bond yields are generally compared to benchmark yields on U.S. Treasury securities of similar maturity. Mutual fund performance is often compared to changes in the Standard & Poor's 500 Stock Index.

Benchmark.

An investment benchmark is a standard against which the performance of an individual security or group of securities is measured.

For example, the average annual performance of a class of securities over time is a benchmark against which current performance of members of that class and the class itself is measured.

When the benchmark is an index tracking a specific segment of the market, the changing value of the index not only measures the strength or weakness of its segment but is the standard against which the performance of individual investments within the segment are measured.

For example, the Standard & Poor's 500 Index (S&P 500) and the Dow Jones Industrial Average (DJIA) are the most widely followed benchmarks, or indicators, of the US market for large-company stocks and the funds that invest in those stocks.

There are other indexes that serve as benchmarks for both broader and narrower segments of the US equities markets, of international markets, and of other types of investments such as bonds, mutual funds, and commodities.

Individual investors and financial professionals often gauge their market expectations and judge the performance of individual investments or market sectors against the appropriate benchmarks. In a somewhat different way, the changing yield on the 10-year US Treasury bond is considered a benchmark of investor attitudes.

For example, a lower yield is an indication that investors are putting money into bonds, driving up the price, possibly because they expect stock prices to drop. Conversely, a higher yield indicates investors are putting their money elsewhere.

Originally the term benchmark was a surveyor's mark indicating a specific height above sea level.

benchmark

A permanent reference mark,usually set in concrete or iron and used to establish the elevation above sea level or certain corners in a surveying system. All other measurements in the area should be checked for accuracy relative to the nearest benchmark, preferably against several nearby benchmarks to establish redundancy.

References in periodicals archive ?
These recent benchmark wins are a continuation of industry-leading performance outcomes from Fujitsu's PRIMEPOWER family.
Remember that the purpose of a benchmark is to direct the activities of the asset manager according to the investment strategy specified by the company.
As you choose a fund's benchmark, keep the following considerations in mind:
At the beginning of the benchmark period there were a few mentions of your innovation, but over time that too has disappeared from view.
Example: "Today XXXXX Corporation announces an industry-leading SPC-1 benchmark result on the new YYYYYY storage system.
The SPC's first objective was to build a block server-based benchmark that would have the broadest possible market appeal in the online enterprise storage market and be capable of scaling to very high I/O throughput levels in storage network topologies.
Participants worked on definitions for a Productive Statistics Benchmark that will offer items such as average labor and parts cost per claim, parts per machine, and first time fix numbers for the computing industry.
The methodology includes the widely accepted BDTI Benchmarks as well as expert evaluation of processor attributes, and provides the basis for BDTI's highly regarded technology reports.
Also key to the benchmark is the process of reporting a SPC-1 benchmark result, as test sponsors must publicly disclose the price (including three years of service) of the configuration being tested.
0, the mobile device industry will have access to the first benchmark intended to simulate accurate, consistent 3D performance prior to the investment in silicon hardware.
Defense Information Systems Agency (DISA), Information Systems Audit and Control Association's COBIT, as well as guidance from CIS members, CIS Benchmarks support available high-level standards that deal with the "Why, Who, When and Where" aspects of IT security by detailing how to secure an ever widening array of workstations, servers, network devices and software applications in terms of technology-specific controls.
We rely on it regularly to benchmark how productive our physicians are -- how many patients each is seeing, how much they're billing, what level they're billing at, and even how many bills are actually being paid.