The Match and Exceed (ME) Framework is Dexterr Private Wealth's proprietary model that builds simple, robust portfolios by combining stability from matching benchmark risk (beta) with the potential for high returns by selectively exceeding performance through high-conviction strategies.
The Match and Exceed (ME) framework isa proprietary model of Dexterr Private Wealth. ME Framework is an investment portfolio construction approach that emphasizes building simple, robust portfolios through a combination of matching beta (risk level) to benchmarks and selectively exceeding market performance by identifying high-conviction, high-beta strategies. This framework delivers both stability and potential for superior risk-adjusted returns, making it an effective strategy in the active versus passive investment debate.
· The ME framework involves using "Match" strategies, where portfolios are designed to match the risk and return profile of market benchmarks (beta of 1),typically by allocating to index funds, mutual funds, and ETFs.
· "Exceed" strategies focus on asset classes and managers that have demonstrated consistent outperformance, often through boutique fund managers, alternative investment funds (AIFs), PMS products, and selectively chosen unlisted shares or credit products.
· By combining these two elements, investors maintain a core exposure to diversified, low-cost, and efficient beta while enhancing returns through satellite allocations to outperformers.
· The ME framework brings total control on liquidity, risks, and execution, ensuring simplicity in large portfolios while still providing opportunities for alpha generation when conditions are favorable.
· It is "fund manager agnostic" in the core allocation, ensuring stability and predictability, while capitalizing on the manager's skill only in high-conviction segments, thus minimizing overall active management risk.
· This approach leverages both passive strengths and targeted active selection, enabling custom allocation blends that suit an investor's risk and return goals.
· In H12025, 66% of active large-cap equity funds in India underperformed their benchmark (S&P India LargeMid Cap), and underperformance rates rose above 70% over longer time horizons.
· Globally, only about 33% of active funds outperformed their average passive peer in 2025,and active funds suffered bigger losses than passive ones during market downturns.
· Passive funds, therefore, offer broad, reliable diversification at significantly lower costs, further justifying the ME framework’s emphasis on a large passive core.
The Match and Exceed framework provides a practical, evidence-based method to harness the predictable returns and cost efficiency of passive strategies while selectively benefiting from active management in niches where outperformance is most likely. Given the consistently poor long-term performance of most active funds versus passive alternatives, the ME framework's approach of matching with the market where appropriate and exceeding only where clear alpha exists is a prudent strategy for modern investment portfolios.
