Selecting the Appropriate Benchmark for Multi-Asset Fund

Mary is an experienced portfolio manager overseeing a multi-asset fund with a diverse range of investments, including equities, fixed income, and alternative assets. As part of her performance evaluation process, she is tasked with selecting an appropriate benchmark to assess her fund's performance accurately. The fund’s objective is to achieve returns above a targeted rate of a 60% equity and 40% bond portfolio over a five-year horizon.

Mary considers three potential benchmarks:

• Benchmark A: A global equity index (100% equity) that tracks the performance of large-cap stocks across developed markets.
• Benchmark B: A blended benchmark representing 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.
• Benchmark C: A diversified alternative assets index that focuses solely on hedge funds and private equity investments.

Given the fund’s specific investment strategy and objectives, which benchmark should Mary select for the most accurate performance evaluation?