MPI was launched back in 2012 as a new STEP Member Service and is distributed free to STEP members and Private Client Practitioners. Its core aim is to bring about transparency and understanding between the trustee and discretionary investment management professions with regard to communicating investment risk and understanding investment returns. The Indices have been designed to be used by STEP Members as performance benchmarks. These incorporate clearly defined risk parameters, which naturally align with the fiduciary role, using the parameters of maximum drawdown and volatility. Furthermore the indices are calculated using data supplied by Investment Managers specifically for portfolios managed on behalf of persons acting in a fiduciary capacity. Indices are available in GBP, USD & EUR, and the risk categories are Low, Medium and High risk.
A STEP Member Service
A STEP Member Service is one which provides key relevant information and resources for full members, students and affiliates. It is possible to offer MPI as a STEP member service as the information it provides is considered to be of importance to persons working in a fiduciary capacity. For this reason, STEP has embraced this concept and reached an agreement with MP Analytics Limited (formerly Enhance MPI Ltd) that the Managed Portfolio Indices can be provided as a free service for its members. The service has been designed to promote transparency of investment performance and to enable STEP Members and other Private Client Practitioners to have a commonality of language with the investment management industry. This will help to ensure that suitable investment strategies are selected and that performance can be judged objectively.
In order to ensure that the MPI maintains its relevance to members and demonstrates continuing high levels of integrity, a Practitioners Group has been formed by invitation from STEP. The Group meets on a regular basis.
Practitioners Group profiles (click on a name for more information) :