Comparators

To help our clients measure the return on their investments and to hold JM Finn to account, we have identified three comparators for each strategy designed to provide a measure of absolute, relative and peer group comparisons.

1) Absolute comparators:

Clients typically come to JM Finn to preserve their wealth over the long term, which generally sees us trying to grow portfolios in excess of inflation, after costs. We therefore use a mix of cash and inflation, as measured by the CPI, as our absolute comparator.

2) Relative comparators:

We have developed a series of comparator indices, which also act as the basis for our long-term strategic asset allocation. By partnering with Morningstar, one of the world’s leading provider of data and research in financial markets, we have been able to develop an index for which each of our five strategies can be measured. Because we are anchoring our asset allocation for each strategy to the index, a key consideration was to ensure the underlying components are investable.

Click here to view the current Strategic Asset Allocation.

3) Peer group comparators:

The third comparator is a peer group average to assess how the strategies have performed in line with other investment managers.  ARC (Asset Risk Consultants) are a consultancy firm that have developed a range of indices for both private clients and charities, that measure the returns of ‘real life’ portfolios from across our industry.  They collate the data and outcomes from over 350,000 investment portfolios at more than 120 firms and are recognised as the most representative performance benchmarks in our industry. 

Please contact your investment manager for more information.