Benchmarks

Mandate 1 benchmark is a composite of the relevant market index multiplied by the strategic weightings of 35.0% for Fixed Interest, 40.0% for Equities, 20.0% for Alternatives and 5.0% for Cash. From inception of the mandate to 31st March 2017, the relevant market indices used to calculate the benchmark return were 35.0% FTSE All Gilt Total Return Index for Fixed Interest, 20.0% FTSE All-Share Total Return Index/ 20.0% FTSE All World (ex UK) Total Return Index for Equities, 15.0% HFRX Equal Weighted Strategies Index/ 5.0% IPD UK Property Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.  From 1st April 2017, the relevant market indices changed to 35.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 20.0% MSCI UK IMI Net Total Return Index/ 20.0% MSCI AC World ex UK IMI Net Total Return Index for Equities, 15.0% HFRX Equal Weighted Strategies Index/ 5.0% IPD UK Property Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash. From 1st April 2019, the relevant market indices changed to 35.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 12.0% MSCI UK IMI Net Total Return Index/ 28.0% MSCI AC World ex UK IMI Net Total Return Index for Equities, 20.0% HFRX Equal Weighted Strategies Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.

Mandate 2 benchmark is a composite of the relevant market index multiplied by the strategic weightings of 25.0% for Fixed Interest, 55.0% for Equities, 15.0% for Alternatives and 5.0% for Cash.  From inception of the mandate to 31st March 2017, the relevant market indices used to calculate the benchmark return were 25.0% FTSE All Gilt Total Return Index for Fixed Interest, 27.5% FTSE All-Share Total Return Index/ 27.5% FTSE All World (ex UK) Total Return Index for Equities, 7.0% HFRX Equal Weighted Strategies Index/ 5.0% IPD UK Property Index/ 3.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash. From 1st April 2017, the relevant market indices changed to 25.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 27.5% MSCI UK IMI Net Total Return Index/ 27.5% MSCI AC World ex UK IMI Net Total Return Index for Equities, 7.0% HFRX Equal Weighted Strategies Index/ 5.0% IPD UK Property Index/ 3.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash. From 1st April 2019, the relevant market indices changed to 25.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 16.5% MSCI UK IMI Net Total Return Index/ 38.5% MSCI AC World ex UK IMI Net Total Return Index for Equities, 15.0% HFRX Equal Weighted Strategies Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.

Mandate 3 benchmark is a composite of the relevant market index multiplied by the strategic weightings of 15.0% for Fixed Interest, 70.0% for Equities, 10.0% for Alternatives and 5.0% for Cash.  From inception of the mandate to 31st March 2017, the relevant market indices used to calculate the benchmark return were 15.0% FTSE All Gilt Total Return Index for Fixed Interest, 35.0% FTSE All-Share Total Return Index/ 35.0% FTSE All World (ex UK) Total Return Index for Equities, 5.0% IPD UK Property Index/ 5.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.  From 1st April 2017, the relevant market indices changed to 15.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 35.0% MSCI UK IMI Net Total Return Index/ 35.0% MSCI AC World ex UK IMI Net Total Return Index for Equities, 5.0% IPD UK Property Index/ 5.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash. From 1st April 2019, the relevant market indices changed to 15.0% Bloomberg Barclays Sterling Gilts Total Return Index for Fixed Interest, 21.0% MSCI UK IMI Net Total Return Index/ 49.0% MSCI AC World ex UK IMI Net Total Return Index for Equities, 10.0% HFRX Equal Weighted Strategies Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.

Mandate 4 benchmark is a composite of the relevant market index multiplied by the strategic weightings of 85.0% for Equities, 10.0% for Alternatives and 5.0% for Cash.  From inception of the mandate to 31st March 2017, the relevant market indices used to calculate the benchmark return were 42.5% FTSE All-Share Total Return Index/ 42.5% FTSE All World (ex UK) Total Return Index for Equities, 5.0% IPD UK Property Index/ 5.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.  From 1st April 2017, the relevant market indices changed to 42.5% MSCI UK IMI Net Total Return Index/ 42.5% MSCI AC World ex UK IMI Net Total Return Index for Equities, 5.0% IPD UK Property Index/ 5.0% S&P Goldman Sachs Commodities Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash. From 1st April 2019, the relevant market indices changed to 25.5% MSCI UK IMI Net Total Return Index/ 59.5% MSCI AC World ex UK IMI Net Total Return Index for Equities, 10.0% HFRX Equal Weighted Strategies Index for Alternatives and 5.0% Barclays Capital Benchmark Overnight Cash Index for Cash.

ARC is an independent consultant that compiles Private Client Indices (PCI) based on historical performance. The four PCI performance series are based on real performance numbers provided by participating investment managers and focus on high quality data with no model or synthetic data being used. There are four categories based on risk-profile relative to equity markets: Cautious, Balanced Asset, Steady  Growth and Equity Risk. This provides an objective and independent means of placing investment performance into context.

The ARC Cautious Index is based on 48 discretionary private client managers contributing actual portfolio performance data net of fees. The definition of a Cautious portfolio is one where the historical variability of returns has been less than 0-40% of that recorded by world equities. The dominant asset classes tend to be cash, bonds and hedge funds.

The ARC Balanced Index is based on 62 discretionary private client managers contributing actual portfolio performance data net of fees. Balanced Asset portfolios are those where the historical variability of returns has been around 40-60% of that recorded by world equities. Balanced asset portfolios tend to encompass the widest range of asset classes. Managers often refer to multi-asset class strategies in this risk category as being absolute return oriented.

The ARC Sterling Steady Growth Index is based on 59 discretionary private client managers contributing actual portfolio performance data net of fees. Portfolios falling into the Steady Growth risk category have a risk profile of between 60-80% of world equity markets. They usually have a significant allocation to equities, but also have exposure to a range of other asset classes. Traditionally, such portfolios would have been designated as ‘Balanced’ (ARC’s definition of a Steady Growth portfolio).

The ARC Sterling Equity Risk Index is based on 49 discretionary private client managers contributing actual portfolio performance data net of fees. The Equity Risk category encompasses all portfolios with a risk profile similar to that of the equity markets (80-120%). Traditionally, such portfolios would have been tagged as “growth”. Equities tend to be the dominant asset class.

 

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.

James Hambro & Partners