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 ?
For a variety of reasons--including regulatory mistakes that contributed to the economic recession in the first place--banks had larger than normal portfolios of long-term government bonds.
The essay, "How Sponsors Can Use Normal Portfolios," by Arjun Divecha and Richard C.