What are the ARC Private Client Indices (PCI)?

The ARC PCI provides unique insight into the actual returns being generated by investment managers for their discretionary private client portfolios, based on real performance numbers (net of fees) provided by participating investment managers

The ARC Private Client Indices (ARC PCI) are a set of risk-based performance benchmarks designed to provide transparency on the performance of discretionary investment managers catering to private clients. The Indices measure the actual net-of-fees returns achieved by participating investment managers across different risk profiles, offering an independent and objective reference point for assessing portfolio performance.

The PCI were launched in 2007 with a start date of December 2003.

Key features of the ARC Private Client Indices:

• Risk-based approach: ARC PCI consists of four indices, each aligned to a different risk tolerance level, ranging from Cautious (lower risk) to Equity Risk (higher risk).
• Net-of-fees performance: The Indices are constructed using actual client outcomes,  reflecting the real-world experience of private investors.
• Multi-manager dataset: The Indices aggregate data from a broad range of discretionary investment managers, ensuring a robust and diversified benchmark.
• Independently calculated: We independently compile and publish the Indices in compliance with the IOSCO Principles for Financial Benchmarks, ensuring credibility and impartiality.
• Frequency: The Indices are published quarterly with daily and monthly estimates, providing investors, advisers and investment managers with ongoing performance insights.

Who Uses the ARC Private Client Indices?

• Investors, private clients, fiduciaries and professional advisers use the Indices to evaluate whether their investment performance is reasonable given their risk profile.
• Investment Managers use PCI as a benchmark to compare their discretionary portfolios against peer-group performance.