With the costs of bespoke discretionary fund management (DFM) becoming increasingly hard to justify for many investors, FE investments has today launched a new range of advanced portfolio management for clients who want a bespoke alternative without paying excessive management fees.
The ‘Mosaic’ portfolio range has been created for high-net-worth or sophisticated investors who would benefit from a wider range of investment strategies and greater exposure to niche assets often not available from off the shelf managed portfolios. The range will come with in-depth reporting and be actively managed by FE Investments.
Consisting of 15 discretionary managed portfolios, the portfolios cater for five differing risk levels over three different time horizons, offering investors around 20-45 holdings in a blend of actively and passively managed funds.
To maximise diversification, each portfolio offers a wide selection of holdings in each asset class. Each asset class is treated as a single portfolio and is overseen by an analyst who works with the portfolio manager to optimise the risk and return profile.
Mosaic will also offer investors detailed reporting on a range of different factors affecting fund performance. Reporting and rebalancing is provided on a quarterly basis and is supplemented by monthly updates, providing investors with in-depth and up-to-date information relating to their portfolio’s performance.
Mosaic is the latest service to be offered by FE Investments, the investment management company of FE fundinfo. Since launching nearly five years ago, FE Investments has enjoyed remarkable success with financial advice firms. The team has seen a 78% year-on-year % growth in AUM (now standing at more than £2bn), the second fastest growing among DFMs on platform, according to a report by Platforum, published in July 2019. The same report also reveals a 40% growth in adviser firms using FE Investments’ portfolios over the past year.
The range will complement FE Investments other portfolios, Hybrid, Responsibly Managed and Income, which cater for a wide range of investor needs.
Rob Gleeson, Head of FE Investments, said: “Bespoke discretionary fund management can be an expensive option with many investors paying for services they don’t need. Additionally, for many clients the level of information they receive on how their portfolios are being managed is not necessarily as clear as it might be. With our Mosaic range, we believe we are offering a different investment proposition, which could offer better value than traditional bespoke DFM offerings and with a greater level of transparency.
“Our Mosaic range follows our trademark and highly-successful risk-focused investment methodology. With unpredictable markets, we avoid making calls on asset or market movements, instead concentrating on evaluating risk within both asset allocation and underlying funds, while maximising diversification for investors. We aim to provide simplicity and clarity for investors and advisers alike and our Mosaic range will enable us to do so for an even more diverse set of clients.”
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