News & Insights

Thanks to the willingness of participating discretionary investment managers to provide transparency on the performance of their private client and charity portfolios, the ARC Private Client Indices (‘PCI’) and the ARC Charity Indices (‘ACI’) are now celebrating two decades of data.

In this article we examine the evolution of the world's largest index set by constituent and the key observations from the last 20 years.

Key Takeaways:

1. Data Contribution and Transparency: The ARC Indices owe their success to the contributions and transparency of discretionary investment managers. This has resulted in a rich database, providing insight into the relative performance of portfolios with similar risk profiles.

2. Performance Over Two Decades: Analysis of the last twenty years reveals that taking risks in financial markets has generally yielded positive real returns for investors.

3. Impact of Manager Performance: The difference in performance between top and bottom quartile investment managers over twenty years is notable, suggesting that the choice of manager can have a significant impact on long-term portfolio value.