For the Record
We received our Discretionary Investment permissions from the FCA 51 months ago. These permissions allow us to switch clients funds at will, rather than ask each client individually before we change our portfolios. That makes us different from 97% of other Financial Advice Firms.
You would have thought this makes us more efficient than the rest. Possibly able to catch more investment market growth than the rest. The proof should be in the pudding.
The FE Adviser Fund Index (FE AFI) is made up of the recommended portfolios of a panel of leading UK financial advisers. Based entirely on the funds actually recommended to clients, the FE AFI Aggressive, Balanced and Cautious portfolios carry real-life credibility, and provide insight in terms of the benefits of holding top quality funds.
Over the last 51 months the chart shows the performance of our Cautious Model Portfolio appears to lag our AFI peer group by 3.35%. Recently our cautious portfolio has dipped as we felt it prudent to increase caution over 2016. However our figures show the return in your pocket, the AFI Index figures show performance before advice costs, management fees and platform costs. Those combined costs come to about 1.35% per year over the period. To get a like for like comparison either add 1.35% for 4.25 years to our figures to arrive at their basis, or deduct 1.35% for 4.25 years off the AFI Index to bring it in line with our basis of calculation. Compound that equates to a difference of 5.86%. On a like for like basis our Cautious Model Portfolio has beaten it’s peer group.
Over the last 51 months we have beaten our AFI peer group with our Moderate Model Portfolio. Around 70% of our clients invest in this portfolio. Our model portfolio has beaten the AFI index by a credible 4.9%. Again our figures include platform costs and our advice fees. Our figures show the return in your pocket, the AFI Index figures exclude advice, management fees and the platform costs mentioned above. That’s a 10.8% difference over the period.
Over the last 51 months we have beaten our AFI peer group with our Aggressive Model Portfolio. We beat the index by 4.7%. Once again the adjustment mentioned above needs to be made on top to the tune of 1.35% per year. That’s a 10.6% difference over the period.
More than just Investment Performance
As you know our main job is that of trusted adviser and lifetime financial planner. We help you to plan for the future and we help you make those decisions that make the future look brighter. Making your life savings grow is simply part and parcel of that process. We would prefer to be judged by the value our advice brings. But it’s not bad when we beat our opposition on performance and value. ??
Remember past performance isn’t necessarily a guide to the future