SIGnet Investors’ Index®

Why a SIGnet investors’ index?

SIGnet members believe that investors should monitor the performance of their investment portfolios against a benchmark. By doing so you can determine whether your investment strategy is producing satisfactory results or whether you should reconsider and seek to improve it. Note that such benchmarking only makes much sense over a reasonably extended time period (typically 5 years+) because any strategy is likely to out- or under-perform over shorter time periods, simply due to random chance.

Having decided to benchmark your performance the next question is what to benchmark against? UK investors typically choose the FTSE100 or FTSE-All Share indices as benchmarks, but these indices suffer from a fatal flaw. They are market capitalisation weighted, which means that the index is heavily influenced by the performance of the largest companies (by market capitalisation). Typical UK investor portfolios are not weighted solely to the largest companies so these standard indices do not provide a very good benchmark for such portfolios.

SIGnet members (most recently Andrew Hall) have therefore devised an alternative index, designed to be more representative. This index is simply an unweighted index of ALL UK listed and quoted companies’ share prices. We believe that index this offers a more representative benchmark for UK investors to measure their performance against.

Logged in SIGnet members can view and download the index by clicking the button below. If you are not yet a SIGnet member and would like to access our index, join here.