Private Investor Indices
The Private Investor Indices are a set of calculations which indicate the returns that investors might expect from their portfolios. The skill in investment management is to design a unique portfolio which will meet an individual investor's needs, so it is unlikely that your portfolio growth will reflect the movement of the Indices exactly.
These are not industry-wide benchmarks, nor do they provide any kind of alternative to the professional investment advice of portfolio managers. However, used properly, they can give a useful perspective on the world of stocks and shares and on the performance of your portfolio.
Since March 2017, MSCI has been the index provider behind the WMA Private Investor Index Series. This series consists of five composite indexes designed to represent the weightings and show returns of selected multi-asset-class strategies, and are used as benchmarks to compare the performance of portfolios.
Read a brochure that explains more about the indices here.
They can provide:
- A basis for discussing and reviewing the asset allocation and structure of your portfolio with your fund manager or stockbroker.
- A benchmark for assessing and comparing the performance of discretionary fund managers.
- A measure to compare the performance of similiar Income, Growth and Balanced based funds.
- There are five Private Investor Indices, to reflect the differing aims of investors:
- the Conservative index
- the Income index
- the Growth index
- the Balanced index and
- the Global Growth index