The article discusses how benchmarks are used by institutional investors in the UK to measure fund managers' performance and influence their behavior. It emphasizes the importance of combining a good benchmark with a suitable fee structure for fund managers to deliver superior investment performance without excessive risks. The evidence suggests that fund managers cannot consistently outperform the market over time, highlighting the efficiency of financial markets. A good benchmark should not favor or discriminate against specific asset classes and should include market weighting in venture capital securities. Overall, a dynamic financial system requires a benchmark that covers all key asset categories and liabilities.