From schweser, it says that the “core” in core-satellite approach is the investor’s passive index and/or enhanced index. However, for the 2011 PM Mock Exam question no. 23, the client’s benchmark is MSCI Singapore Free Index, where one of the fund (GB-STI-3) managed by investment manager is benchmarked against STI Index with zero alpha and tracking risk.
Shouldn’t the “MSCI Singapore Free Index” be the benchmark used as “Core”, instead of STI Index, considering investor’s benchmark? Thanks.