How are the MPS Indices different to the Private Client Indices (PCI)?

The MPS Indices focus on the reported performance model or unitised solutions available on platforms and are classified using average equity allocation. The PCI use realised volatility of discretionary private client portfolios in their construction.

The key differences between the ARC Managed Platform Solutions (MPS) Indices and the ARC Private Client Indices (PCI) lie in their purpose, construction and target audience.

	ARC MPS Indices	ARC Private Client Indices
Target users	Investment managers and IFAs	All investors
Source data	MPS/unitised DFM on platform	Private client portfolios
Number of classifications	5	4
Classification basis	Average asset allocation	Relative risk to world equities
Classifications	0-20 20-40 40-60 60-80 80-100	Cautious Balanced Asset Steady Growth Equity Risk
Start date	December 2012	December 2003

Purpose & Use Case

ARC MPS Indices

Designed specifically as a benchmark for managed solutions, model portfolios or unitised services offered by discretionary investment managers available on platforms. The Indices cater primarily to financial advisers, wealth managers and investment providers assessing the performance of MPS strategies.

ARC PCI

Aims to provide a performance benchmark for private client discretionary portfolios. The Indices are used by private clients, trustees and professional advisers to compare the returns of discretionary portfolios across defined risk profiles.

Data Source

ARC MPS Indices

Constructed using model data submitted by discretionary investment managers running MPS solutions on investment platforms.

ARC PCI

Based on actual private client portfolio data aggregated from discretionary managers, providing a real-world measure of returns experienced by investors with similar risk profiles.

Accessibility and transparency

ARC MPS Indices

Primarily used by investment professionals who need a relevant and independent reference point for MPS performance.

ARC PCI

A widely recognised industry benchmark used by private clients, trustees and advisers for portfolio comparison.

Risk profiles

ARC MPS Indices

Uses 5 categories or classifications defined by 3 year average equity allocation.

ARC PCI

Uses 4 categories defined by relative risk (volatility) to world equities.

If you are an existing ARC Indices contributor, please get in touch with your account contact for more information.

If you would like more information about becoming a contributor, please see our website here.

Commercial use of the ARC Wealth Indices requires a licence.

The usage of our Indices is detailed in clause 5 of our Terms and Conditions.

Unauthorised use of the ARC Indices incurs a penalty as set out in the terms and conditions. If there is any doubt over whether your use of our Indices is in breach of the terms, please contact us to avoid any risk of becoming liable to a penalty.