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Approved funds list - FE Advisory 100 - also sees turnover
HONG KONG, Jan. 24, 2019 /PRNewswire/ -- FE Advisory Asia today announced it has maintained a slight risk overweight in its range of risk-targeted portfolios in its latest rebalance. It is re-positioning its developed market equity exposure from US focused to broader developed markets, and from growth to a more value-growth blended approach to offer better protection from the downside.
FE portfolios are a total investment solution designed to help wealth advisers achieve superior risk-adjusted returns through an optimal combination of actively managed funds. The three standard portfolios: Cautious, Balanced and Growth are rebalanced twice yearly and the latest rebalance took place in December 2018. The portfolios are constructed exclusively from funds that have made the FE Advisory 100 list which has seen turnover of six funds at the latest rebalance.
Luke Ng, FE Advisory Asia Head of Research, comments: "We think macro uncertainties will persist in 2019 and the positive push that we have seen from the US tax reform will be fading away. However, we are maintaining our slight risk overweight's in all three portfolios in view of the fact that relative valuation for fixed income looks stretched. While we could run into a late cycle, we remain unconvinced that recession is around the corner.
Broadly, we are maintaining the risk overweight by replacing pure US exposure with broader developed market exposed funds and repositioning our Asian and emerging market exposures to take advantage of attractive dividend payments or yields and selective opportunities in emerging market debt which experienced turmoil earlier this year."
FE portfolios are optimised to maximise the overall level of diversification. By analysing the relationships between funds, FE aims to find the best possible mix, where differing strategies are complementary, and further reduce the total risk in the portfolio.
Michael Li, FE Advisory COO, comments: "Despite the slight risk overweight, we still believe diversification remains an investor's best defence. The latest changes to our portfolios and the FE Advisory 100 reflect the funds we believe are best at their respective strategies within each asset class - strategies being selected for their suitability in a wide range of scenarios, not just their short-term success."
FE Advisory 100
The FE Advisory 100 encompasses a broad selection of the highest quality funds spanning all asset classes and sectors from the HK SFC authorised fund universe. Funds initially undergo a rigorous quantitative screening encompassing FE Fund Crown Ratings, FE Alpha Manager Ratings, FE Group Awards and FE AFI (Adviser Fund Index). FE's dedicated team of FE Analysts overlay this their own independent and unique qualitative analysis.
There were six changes made to the FE Advisory 100 funds at the latest rebalance:
FUNDS IN (Sector)
FUNDS OUT (Sector)
NOTES TO EDITORS
About FE Advisory Asia
FE Portfolios: Our portfolios are a total investment solution designed to help wealth advisers. FE Advisory Asia has produced a range of optimised portfolios which are designed to achieve consistent outperformance whilst minimising risk.
The portfolios are optimised to maximise the overall level of diversification using active funds. By analysing the relationships between funds we aim to find the best possible mix, where differing strategies are complementary and further reduce the total risk in the portfolio.
FE Advisory Asia produce three portfolios that uses optimal asset allocation models from AKG as a reference for each level of risk. We optimize our portfolios to match the risk of the reference, but with greater returns and better capital protection. We use the asset allocation models as a guide but allow our portfolios to differ significantly where we are able to diversify away the extra risk. This approach has been developed internally by FE and has been validated by Cass Business School.
FE Portfolios are constructed exclusively from funds that have made the FE Advisory 100 and have therefore gone through a rigorous vetting procedure.
FE Advisory 100: Our approved list of 100 funds builds upon our established suite of research tools to help keep investors better informed. Funds initially undergo a rigorous quant screening to identify the best performers. This screening encompasses four distinct areas; FE Fund Crown Ratings, FE Alpha Manager Ratings, FE Group Awards and FE AFI (Adviser Fund Index).
These four areas combined allow us to accurately scrutinize a fund from all angles. Our dedicated team of FE Analysts overlay this quant analysis with their own independent and unique qualitative analysis. Funds that pass this rigorous two-stage quantitative and qualitative analysis process then make it on to the FE Advisory 100.
About FE
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FE is a leading international provider of data and technology to the asset management and wealth management industries, with clients ranging from the world's largest asset managers and banks to financial advisers and distributors. FE connects these groups to enable better informed investment decision making, providing data, documents, tools, research, ratings and model portfolios. In November 2018, FE joined forces with two fund data businesses based in Europe ꟷfundinfo (Switzerland) and F2C (Luxembourg). This combination harnesses the complementary capabilities, reach and resource of each firm, increasing the breadth and depth of the client offering and positioning the firm for rapid international growth. FE employs c.600 people across UK, Switzerland, Luxembourg, India, Australia and other European and Asian centres.
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