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FE provides new approach to calculating the impact of all costs on portfolio returns

By Corporate

Updated on Tuesday, 22 May, 2018

LONDON, 22 May 2018: FE has today announced the launch of the FE Analytics+ Reduction in Yield (RIY) Calculator, a tool that offers advisers a simpler, more efficient approach to assessing the impact of costs on future returns, in the form of a single figure, rather than relying on projections from product providers.

The FCA requires that when recommending investments to clients, advisers undertake appropriate cost comparisons, factoring in all costs. The Reduction in Yield calculation is becoming a popular way to do this. FE’s RIY tool offers advisers an alternative to an often lengthy and manual process.

Matt Surfleet, commercial director at FE commented: “Many advisers face difficulties when searching for the necessary charges information and routinely rely on projection data to identify and demonstrate the impact of charges on real returns.

“Traditionally, projections on existing plans have been obtained straight from the provider and compared to projections on the new plan to show the monetary impact of the charges. This method can be lengthy and does not always consider every type of charge, for instance advisers’ own charges, making comparisons difficult.”

FE’s RIY calculator gives clients an inclusive view of the impact of costs on their portfolio and on returns in the future and is fully integrated with FE Analytics. Access is free for existing users and can be used for all investment types.

Surfleet added: “FE's ISO certified data collection processes already collect a range of charges data which are made available on FE Analytics. Advisers using FE Analytics can access these charges, but they also have the capability of including their own charges as well as any platform charges in order to establish the most accurate reduction in yield figure of their recommended portfolio against an existing portfolio.

“This simpler, quicker process makes explaining the impact of costs to clients far easier for advisers.”

Cathi Harrison, founder of Paraplanning firm, Para Sols and newly launched Apricity Compliance, stated: “The new Reduction in Yield calculator in FE Analytics is great as it is a straightforward, step by step tool that allows you to see the impact on the clients’ monetary value of the charges levied against their investment. The calculator allows you to drill down to a good level of detail on each charge, is flexible enough for most investment types and provides a clear and transparent summary for clients that can be included in client reports.''




About FE

FE is a leading provider of data, software and performance analytics to the financial services industry. FE’s products and services are designed to interpret and analyse data, helping financial advisers and investors stay well informed and ultimately make sound investment decisions. FE also provides tools and software for fund managers and other financial services firms, including products to assist with fund reporting and analysis as well as fund marketing and presentation materials. FE has offices in the UK, Europe and across Asia Pacific. Its clients include life and pension providers, asset managers, financial advisers and networks, wrap platforms, fund supermarkets, software houses, and financial portals.