Private investor indices
An introduction to the FTSE/APCIMS indices
The Private Investor Indices provided by FTSE and APCIMS are a set of calculations which indicate the returns which 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.
They can provide:
- A measure to compare the performance of Income, Growth and Balanced funds.
- A basis for 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.
There are three Private Investor Indices, to reflect the differing aims of investors:
- the Growth portfolio is for investors seeking capital growth;
- the Income portfolio is for those seeking a steady income from their investments; and
- the Balanced portfolio is for those seeking a balance of income and capital growth.
Each of these portfolios contains different proportions of UK shares, international shares, bonds and cash to reflect the investment aims. The changes in their values (the movement up or down of the UK shares, international shares, bonds and cash) are represented by the movements of four related indices.
Currently the allocations and their respective indices are:
Income portfolio |
% Growth portfolio |
% Balanced portfolio |
% Representative index |
|
UK shares |
42.5 |
47.5 |
42.5 |
FTSE All-Share |
International shares |
12.5 |
32.5 |
25.0 |
FTSE World Ex-UK Index calculated in Sterling |
Bonds |
35.0 |
7.5 |
20.0 |
FTSE Gilts All Stocks index |
Cash |
5.0 |
2.5 |
5.0 |
7-Day LIBOR –1% (London Interbank Offer Rate) |
Commercial Property |
2.5 |
2.5 |
2.5 |
FTSE UK Commercial Property Index |
Hedge funds |
2.5 |
7.5 |
5.0 |
FTSE/APCIMS Hedge (Inv trust) index |
Total |
100 |
100 |
100 |
|
The latest values of the indices can be found on the FTSE website. Click here to go directly to the relevant page.
Indices values are also published every weekend on the Databank page of the Financial Times' Money & Business section.
Correspondence:
FTSE/APCIMS Private Investor Indices – Changes implemented as of 1st April 2010
Reissue of APCIMS Private Investor Indices files (1st April - 31st July 2009)
APCIMS Indices Hedge Fund component – Replacement Underlying index
18th June 2009
FTSE Hedge component of Indices
21st April 2009
Issues relating to FTSE indices
12th November 2008
Resources: