Weighting refers to the proportion of a fund’s portfolio held in a particular asset or sector compared with its benchmark or an index. Being ‘underweight’ is when a fund has a lower percentage weighting in an asset class, stock, sector or geographical region than the index or benchmark against which it is measured. For example, if a fund has a 4% weighting in Asian equities, but its benchmark has a 7% weighting, the fund is 3% underweight. Conversely, being ‘overweight’ is when a fund has a greater percentage weighting than the index or benchmark. For example, if a fund has a 10% weighting in Asian equities, but its benchmark has a 7% weighting, the fund is 3% overweight.