Following feedback derived from the Quarterly Investment Review, we have decided to show portfolio returns against an informal comparator we monitor our performance against known as the ‘ARC indices’. These are widely-used within the industry and consist of a range of four indices, covering different risk levels, which aggregate together performance data submitted by a number of Discretionary Fund Managers across the country.
Of course, how your portfolio performs relative both to inflation and to the interest rates available on cash accounts is also of critical importance.
The current portfolios, constituted as discretionary models, began life in December 2019. However, their track record actually goes back further when including the period spent as advisory models between late 2014 and 2019. (The difference between the two is that under a discretionary model, your investment manager has the freedom to change the holdings and weightings of your portfolio at their discretion; under an advisory framework, your investment manager must put every recommendation to you before trading and seek your permission prior to enacting.)
When taking the whole track record of the portfolios into consideration, performance compared to these informal comparators stacks up well:
| AIPM Core Alpha portfolio | AIPM Core Alpha return (%)* | ARC index comparator return (%)* | ARC index comparator |
| 40 | 4.1 | 2.0 | Cautious |
| 60 | 5.4 | 3.2 | Balanced |
| 80 | 6.4 | 4.4 | Steady Growth |
| 100 | 7.2 | 5.3 | Equity Risk |
| AIPM Core Alpha portfolio | In how many full calendar years, 2015-22, has it been the better performer? | ARC index comparator | |
| 40 | 6 | 2 | Cautious |
| 60 | 6 | 2 | Balanced |
| 80 | 5 | 3 | Steady Growth |
| 100 | 5 | 3 | Equity Risk |
Long-term portfolio returns (A, B, C, D) versus UK inflation (E) and cash (F)
All portfolios have delivered returns that outstrip both inflation and cash since inception – even after the recent surge in price rises. Rates on cash have picked up of late but continue to be outstripped by inflation.
Explanatory notes
* Annualised returns, 1 October 2014 – 30 June 2023, gross returns in Pounds Sterling
- It has not been possible to include the Conscious Alpha, Cautious Alpha and Passive Income portfolios also managed by Asset Intelligence and utilised by Furnley House in this analysis. This is because these portfolios have much shorter track records than the primary Core Alpha range (being incepted in 2021, 2022 and 2022 respectively)
- The returns set out above take account of investment fund charges but do not include the impact of the adviser charge, platform charge or discretionary investment management charge
- UK inflation: UK Consumer Prices Index
- Cash account: Moneyfacts Instant Access No Notice 25K index (a gauge of the estimated interest rate paid by an instant access savings account for someone with £25,000 to deposit)
