Tracking error

The tracking error expresses the deviation of the fund return from the development of a benchmark return (divergence error). The tracking error shows how actively the fund manager manages the fund and how closely he adheres to the benchmark. The tracking error shows the fluctuations in relative returns, the average deviation of the fund returns from the benchmark returns. The fluctuation relative returns is the result of assuming active risks (by selection and timing on the part of the fund management).

Term-Nr.: 853

German: Tracking Error (793)

Source: SFO D15 2010 m. e. E., 24.04.2010

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