London, U.K.-based investment consulting firm Asset Risk Consultants (U.K) Ltd. has introduced four new indices denominated in Canadian dollars to be used as performance yardsticks for Canadian money managers and their private wealth clients.

The Canadian private client indices (CAD PCI) are based on the performance of almost 30 contributing investment managers incorporating thousands of private client portfolio results representing a range of portfolio sizes and manager styles. The performance history of the indices goes back to 2003.

The timing of the launch is propitious as clients are now receiving detailed information on their personal money-weighted returns under the new rules that have come into effect with the second phase of the client relationship management (a.k.a. CRM2), says Andrew O’Neill, director of ARC.

As those return numbers are difficult to evaluate without context, the ARC CAD PCI provide context by allowing private client investors to compare the performance of their portfolio vs a comparable universe.

“There are certain parallels in the regulatory climate in the U.K. and Canada, with a focus on more detailed disclosure regarding fees and returns,” O’Neill says. “Each individual’s portfolio results can be difficult to contextualize, and the private client indices are a response to that.”

The new indices cover four separate areas along the risk and volatility spectrum and with varying degrees of equity content. The indices include ARC Cautious PCI, ARC Balanced Asset PCI, ARC Steady Growth PCI and ARC Equity Risk PCI. Each portfolio’s risk is measured relative to the overall equity market.

The indices measure performance over various time periods starting from December 2003 and can also provide data on 12-month rolling returns and historic drawdowns.

The portfolios allow Canadian managers, advisors and clients to evaluate their own outcomes relative to an industry standard based on actual returns of a variety of participants including banks, mutual fund providers and boutique money management firms.

ARC’s PCI are available free of charge through a web-based subscription service (www.suggestus.com). ARC’s original global indices, launched in 2006, are widely used by the investment management industry. The firm employs 60 consultants with offices in London, Guernsey and Jersey.

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