ARC Ratings (Performance Grade & Medals): Key Differences Explained

ARC Ratings Explained: A Dual Approach to Evaluating Past Performance and Guiding Future Investment Choices

ARC utilises two distinct ratings: Performance Grade and Medals.

Performance Grades are evaluated against our ARC PCI and ACI Indices universes and are designed to assess historical portfolio performance on a specific portfolio. In contrast, Medal ratings are used to aid investors in comparing solutions prior to making investment decisions, typically in relation to our ARC MPS universe.

It is important to note that MPS data is often presented on a theoretical basis rather than derived from actual investor results. Consequently, this data is "idealised" and does not account for factors such as real implementation costs, adviser fees, tax implications, cashflow impacts, or deviations driven by client choices. This distinction is why we have established two separate rating systems.

The Performance Grade (compared to ARC PCI/ACI) reflects your past performance, while the Medal rating (compared to ARC MPS) serves as a guide for future investment decisions .

Methodology

 The methodologies underpinning the rating approaches are summarised below 

Rating options and illustrative mapping:-

 Whilst the rating approaches are not directly comparable, the proportion allocated into each category across the different peer groups are broadly similar. As such, the table below provide some guidance to users as to how the Performance Grades and Medal correspond to each other.