FE’s discretionary managed portfolio service was first launched on a single platform just over three years ago to offer Advisers a new breed of model portfolios; created jargon-free with a view to enhancing the Adviser – Investor relationship.
Since then, FE Invest has surpassed the £1 billion AUM mark with hundreds of advice firms using the service for their investment research and portfolio management needs. This has resulted in FE Invest being named the fastest growing DFM (discretionary fund manager) on platform according to the latest research from Platforum*.
The same research from Platforum also indicates that there is no shortage of DFM solutions available to Advisers today – 77 DFM model portfolio providers are available on at least two platforms. So, what makes FE Invest stand out in this crowded market and be the fastest growing last year?
Our approach to portfolio construction
FE Invest uses a robust quantitative and qualitative based methodology that draws on FE’s data collection history, renowned ratings and a global team of analysts. Driven by data and guided by the principle of managing risk for optimal returns, we have built a portfolio optimiser that aims to maximise the diversification ratio based on a set of parameters, thereby ensuring maximum market exposure for any given level of risk. The portfolios are then aggressively tested by our analysts to ensure consistent adherence to risk budgets. The process has been verified by CASS business school as a superior way of building portfolios.
Suitability is at the heart of what we do
FE Invest is built with the end investor in mind. We understand their needs are varied and hence offer an inclusive range of portfolios that suit a variety of investor risk profiles, investment objectives and investment time horizons. This includes four portfolio ranges Active (five risk levels), Hybrid (five risk levels), Responsibly managed (three risk levels) and a dedicated Income portfolio.
What makes the proposition even more comprehensive is unusual in model portfolio solutions – at each risk level, three term-weighted portfolios are available to ensure that clients are invested in the most suitable asset mix to help them achieve their goals
Full service offering
Although built with the end investor in mind, the FE Invest service is designed to add value to the Adviser’s business. A key part of the service is ensuring that Advisers are better informed and have the right resources to demonstrate the value of their advice.
We produce a range of documentation for Advisers who use our service including fund reports, portfolio reports, portfolio reviews every time we make a change, weekly market commentaries, technical governance report and quarterly market outlooks. All of which can be white labelled.
We have also introduced an Adviser portal that provides the latest insights from the analyst team including blogs, fund manager interviews and the ability to contact the analyst team directly. A suite of research documentation on the portfolios and the individual funds are available for download. The information is presented in an easy to understand format, that can be forwarded on to investors- so whilst we have a nine-page analyst report underpinning each fund recommendation the fund report presented to investors is limited to just a page!
FE’s commitment to Advisers
The Adviser ultimately decides what is best for the investor. We work in ‘partnership’ with Advisers to support this. We are not prescriptive in nature and believe in giving Advisers all the tools, data and support required to ensure investment success and regulatory compliance.
All the FE Invest portfolios are integrated into the FE Analytics system so that advisers can conduct full due diligence on them versus multi asset funds, indices or even other DFMs through the FE Transmission DFM analysis service. Advisers also benefit from being able to drill down into our fees and individual fund fees including transactional ex-ante costs– rest assured that our reporting is fully MiFID and COBS 4 compliant.
This partnership-based approach has won the loyalty of many Advisers over the last 3 years, including those who have historically never outsourced their investments to a third-party provider, or used a DFM.
“We are delighted with the innovative approach and use of technology FE’s Model Portfolio Service provides to meet our needs. Their willingness to adapt and continually improve has resulted in both an advanced service and cost saving for our valued clients.” - Lewis Brownlee Financial Services
Speak to us today to find out if FE Invest could enhance your advice practice - [email protected]
