Researchers launch IHT portfolio index

Portfolios targeting inheritance tax mitigation have a new benchmark.

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ARC Research, part of independent investment consultancy the ARC (Asset Risk Consultants) Group, has launched the ARC Inheritance Tax Portfolio Index (AIP).

AIP is designed to be used as an investment performance yardstick by investors and is based on the actual returns being delivered by 10 IHT portfolio managers.

The index’s 10 contributors provide real portfolio performance figures net of fees – specifically targeting IHT mitigation.

The data represents a range of different sizes and styles of manager with the new indices having a five-years history, from December 2012.

ARC already publishes Private Client (PCI) and Charity Indices (ACI).

Increasingly popular

“This type of portfolio has been increasingly popular as a tool for IHT mitigation, but there was no suitable peer group yardstick available and no standardisation of performance reporting,” Daniel Hurdley, director of ARC Research, said.

“The AIP provide investors with the confidence that data has been collected in the same rigorous manner for all the data contributors.

“Adding the AIP to the suite of our unique peer group indices, will allow trustees and intermediaries to place performance of IHT portfolios against a suitable peer group.”

The indices are based on real performance numbers, net of fees, supplied by participating investment managers. Each contributor provides ARC with the performance figures of the portfolios they manage on an anonymous basis, which allows ARC to ascertain the ‘average’ of each manager.

ARC’s indices have no pre-set asset allocations, no concentration limits and no simulated or model performances.

The IHT index is published through ARC data hub Suggestus, along with the PCI, ACI and a range of other analysis for intermediaries.


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