As part of its Q3 estimates, the ARC Sterling Cautious index – a measurement of actual returns being generated by investment managers for their discretionary private client portfolios – was up 1.8% year-to-date. This is compared to a target relative risk of 0% to 40% of world equity markets.
The ARC Sterling Balanced Asset index (target relative risk of 40% to 60% of world equity markets) was up 0.4%; ARC Sterling Steady Growth (60% to 80% of world equities) was down 0.3%; the laggard was ARC Sterling Equity Risk (80% to 110% of world equities) down 0.8%.
The strongest month for discretionaries was April, while the data indicates that Q3 has proven to be the toughest period to make money.
However, since the start of the data in December 2003 until June 2011, Equity Risk has led the way up 173%; Steady Growth is up 162%; Balanced Asset is up 154%; while Cautious achieved a still healthy 144% rise.
