When constructing a portfolio for a pension fund targeting long-term capital appreciation with a Canadian equity mandate, which of the following would be the most appropriate benchmark for performance evaluation?

Question: When constructing a portfolio for a pension fund targeting long-term capital appreciation with a Canadian equity mandate, which of the following would be the most appropriate benchmark for performance evaluation?

Answer options:

• S&P 500 Index (USD)
• FTSE Global All Cap Index ✅ S&P/TSX Composite Index
• Bloomberg Global Aggregate Bond Index

Correct answer: S&P/TSX Composite Index

Explanation: For a Canadian equity mandate, the S&P/TSX Composite Index is the most relevant benchmark as it represents the performance of the broad Canadian equity market, allowing for a fair comparison of the fund's investment strategy within its specified universe.