Asset Risk Consultants (ARC) Research is launching its ARC Managed Platform Solutions (MPS) Indices, which aim to give independent financial advisers (IFA) clarity on the performance of MPS managers.

The new indices will be launched in the second quarter of 2025 and include model portfolios on adviser platforms, alongside funds that mirror MPS strategies, and will be free to access for IFAs.

With the launch of the indices, the analytics provider is seeking to build a universal-standard comparator index series for MPS.

ARC stated that the launch coincided with the continued growth of the MPS market, which was being driven by evolving client demands and changing market dynamics.

More than a third of IFA firms rely on MPS for most or all of their clients, while assets under management have risen by 28 per cent, according to figures from The Lang Cat.

The firm noted that many IFAs had been using the ARC PCI as a proxy for comparison against model portfolio solutions, but there were “distinct differences” between the two, and the new MPS Indices would give IFAs a “more accurate and appropriate reflection” of a solution’s performance against its peers.

The new MPS Indices will show targeted outcomes from an investment strategy accessible on a platform, and will be net of investment fees but will exclude platform and adviser charges.

Furthermore, the new indices will be asset allocation-based, rather than risk-based, as ARC felt advisers wanted to look at expected outcomes based on an asset allocation.

The indices will launch with approximately 500 models from more than 70 investment managers and will initially be calculated quarterly, with monthly and daily estimates.

“The MPS sector has matured enough to warrant its own dedicated index series that reflects its unique characteristics, distinguishing it from private client discretionary services,” commented ARC Research managing director, Dan Hurdley.

“Demand is growing for more specific data, particularly from the IFA community, and while the ARC PCI has always been a good proxy, there are differences.

“Given our position as the leading provider of robust and trusted performance comparators, we believe we are well-placed to launch a new series alongside the other ARC Wealth Indices.

“Working closely with MPS providers, it’s a series that we believe can become the benchmark for comparing MPS performance.”

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