ARC Research has published its ARC Managed Platform Solutions (MPS) Indices, seeking to give financial advisers insights on the performance of MPS managers and a universal standard comparator index series for MPS solutions.

The new indices, which are free for independent financial advisers (IFA), track performance from 2013 and include model portfolios on adviser platforms, alongside funds that mirror MPS strategies.

The indices, which are asset allocation-based and calculated net of manager fees, are derived from around 750 models from approximately 60 investment managers.

Asset allocation categories of 0-20 per cent, 20-40 per cent, 40-60 per cent, 60-80 per cent, and 80-100 per cent are used, with the first performance figures for Q1 2025 having been published.

ARC’s new MPS Indices have been constructed using performance and asset allocation data submitted by participating providers, which are classified based on equity exposure over a three-year rolling period.

They are calculated net of investment fees, including investment management charges and underlying instrument costs, but exclude platform and adviser charges.

ARC noted that the actual investor outcome will vary depending on the individual fee arrangements charged by the adviser and platforms.

“The new ARC MPS Indices provide a valuable peer group return comparison for MPS model offerings allowing MPS models to be ranked according to a range of return and risk metrics,” said ARC Research managing director, Dan Hurdley.

“The ability to place MPS into a peer group context should greatly assist IFAs seeking to recommend MPS solutions to their clients.

“Until now, many IFAs have used the ARC Private Client Indices (PCI) as a proxy for comparison against model portfolio solutions but there are distinct differences between the two. The new MPS Indices will give IFAs a more accurate and appropriate reflection of a solution’s performance against its peers.”

Later this year, a ranking functionality will be made available for IFAs to further support comparison between models, and ARC is providing a ‘medal rating’ for all eligible MPS solutions.

ARC said the new index launch coincided with the continued growth of the MPS market, highlighting research by Equisoft that found 51 per cent of IFAs were using MPA solutions for more than half their clients, and 70 per cent expected to allocate more client assets to a greater number of solutions in the future.

“With a strong desire by MPS providers and IFAs to be able to compare MPS offerings on a level playing field, the ARC MPS Indices have been constructed to sit alongside and complement the ARC PCI,” Hurdley concluded.

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