Your performance versus peers
The ARC Performance Grade uses our unique database of the hundreds of thousands of real client portfolio outcomes that make up the ARC PCI peer group to provide a performance assessment. This Grade analyses the risk characteristics of the portfolio, looks at the returns it has made, and compares risk-adjusted returns to a group of similar portfolios. Similar portfolios are those that have the same reference currency and comparable risk characteristics. The Performance Grade is essentially a ranking of risk adjusted performance in a universe of multi-asset class portfolios that have taken similar levels of risk. This ranking results in one of six grades being awarded.
The Grade requires a minimum of 12 months performance history and is calculated for the latest ten years, or from inception if this period is shorter.
To calculate this grade accurately, a minimum of 36 months of performance data to the current quarter end is required. If less data is available, the rating will be greyscale, not colour, and should be considered indicative.
As a rule of thumb, if a Portfolio has been graded A-C, there should be no reason for concern. Portfolios graded D-F warrant further attention.
The table below sets out the mark scheme for the Suggestus Performances Grades.
So, what does it all mean?
|
Grade |
Criteria |
|
|
A |
In the top 10% of the Peer Group |
Risk-adjusted performance has significantly exceeded the Peer Group average |
|
B |
In the next 20% of the Peer Group |
Risk-adjusted performance has been ahead of the Peer Group average |
|
C |
In the next 30% of the Peer Group |
Risk-adjusted performance has been in line with the Peer Group average |
|
D |
In the next 25% of the Peer Group |
Risk-adjusted performance has been behind the Peer Group average |
|
E |
In the next 10% of the Peer Group |
Risk-adjusted performance has been well behind the Peer Group average |
|
F |
In the last 5% of the Peer Group |
Risk-adjusted performance has significantly lagged the Peer Group average |