Dynamic Planner and MSCI have collaborated to launch a new set of ten indices that are mapped to risk models.
The indices will benchmark how investments perform against Dynamic Planner’s risk profiles by tracking their underlying performance, giving an indication of what consistutes good risk-adjusted returns.
The data will track back over ten years, and Dynamic Planner says the new indexes could also be used as a constraint, performance target, or comparator by asset managers to help comply with FCA guidance on benchmarking in the asset management market study.
Last month, Dynamic Planner announced it was udnergoing a £5m upgrade project. The new indexes will form part of this project and be included with the Mifid II reporting tool rolled out last month.
The indexes are set to launch this Spring.
Dynamic Planner proposition director Chris jones says: “Over the last two years the FCA’s asset management market study has brought to the fore the importance of demonstrating returns for the risk taken by the investor. As a result, there is significant demand from our clients; both advisory firms and asset managers, for relevant, independent, risk-based benchmarks.
MSCI head of wealth for index products Steven Kowal says: “There has been a longstanding demand in the marketplace for multi-asset class indexes that can serve as benchmarks for portfolios that are primarily risk rather than return-targeted.
“Sector and other peer-group averages can provide general guidance but can be too broad and not investible. MSCI’s collaboration with Dynamic Planner…aims to fill this void by offering these independent, daily-priced indexes.”