Friends Provident International (FPI) has launched five risk-rated model fund portfolios for exclusive use within its online portfolio planning tool, Dynamic Portfolio Planner International (DPPi). Known as Asset Builder Portfolios, they are powered by independent industry recognised experts, Morningstar OBSR.
Since its launch in 2008, DPPi, has successfully provided advisers with sophisticated risk profiling, financial goal planning and target asset allocation models. At the heart of the application is historical and forward-looking analysis of core asset classes which are used to develop efficiently balanced asset allocation targets for identified client risk profiles. A stochastic model also provides probability assessments in meeting client specific financial goals. These tools are supplied by Distribution Technology Limited.
With the launch of the Asset Builder Portfolios, which are mapped to the target asset allocations within DPPi, FPI has gone one step further with ready made investment solutions for professional advisers to use at the touch of a button.
Morningstar OBSR has been commissioned to blend funds selected from FPI’s global guided mirror fund range (USD denominated) to provide the optimal mix of funds that map to the defined risk profile and asset allocation targets in DPPi, thereby improving the consistency of customer outcomes. In addition the service from Morningstar OBSR includes a formal review of the Asset Builder Portfolios on a quarterly basis to identify any required changes to the models. Advisers also benefit from FPI’s own in-house fund research capabilities, an effective double layer of monitoring.
Advisers registered for DPPi will have the added benefit of a quarterly ‘reasons why report’ sourced from Morningstar OBSR and should portfolio re-balancing adjustments be required, users will receive automatic email alerts to contact their clients accordingly. This development also coincides with the annual model update for DPPi.
Jim Henning, Funds Marketing and Research Manager at Friends Provident International, said:
“The combination of DPPi’s sophisticated asset allocation guidance with the new fund blending expertise from Morningstar OBSR means that FPI’s online portfolio construction service really is a most compelling proposition for professional advisers. We are offering the right tool set for advisers to navigate their client portfolios through uncertain times.”
Benjamin Bird, International Development Director at Morningstar OBSR, said:
“Asset allocation and fund selection are vital in ensuring that client needs and long-term investment expectations are met. The introduction of risk-based model portfolios is a relatively new development in the offshore market and one which helps differentiate the FPI proposition.”
Ben Goss, CEO of Distribution Technology Limited, said:
“As a leading provider of risk profiling solutions, we have seen a big increase in demand for robust processes that deliver quality customer outcomes and risk-aligned investments. We have been working closely with FPI on DPPi since its inception; this new development is a very exciting one for the offshore market place, where FPI continues to be at the forefront.”
