The portfolios launched in beta on 1 January in order to iron out any technical issues. However, they are now officially live and have close to a six-month performance record, according to Michael Li, FE Advisory Asia’s chief operating officer.
The models will be a source of reference for Axa’s professional advisory clientele who may lack the resources to track the full range of funds or simply use them as a benchmark to help build and test against their own models, Eddie Fung, chief alternative distribution officer at Axa, said in the statement.
FE designed three portfolios: cautious, balanced and growth. Each portfolio has eight funds selected from the current range of 137 funds available across Axa’s investment-linked products and each targeting a pre-defined volatility range of 4%, 7% and 10%.
The funds in the portfolios:
| FE-Axa cautious portfolio composition | |
| Blackrock – GF Asia Tiger Bond | 20% |
| Fidelity – US Dollar Bond | 20% |
| AB FCP I – Global High Yield Portfolio | 14% |
| Templeton – Global Total Return | 11% |
| Blackrock – GF Global Dynamic Equity | 10% |
| First State – Asia Opportunities | 10% |
| Janus Henderson – Balanced | 10% |
| Pictet – Global Emerging Debt | 5% |
| FE-Axa balanced portfolio composition | |
| Fidelity – US Dollar Bond | 20% |
| Blackrock – GF Global Dynamic Equity | 17% |
| FirstState – Asia Opportunities | 15% |
| Schroder – ISF Global Emerging Market Opportunities | 15% |
| Templeton – Global Total Return | 13% |
| Blackrock – GF Asian Tiger Bond | 10% |
| Blackrock – GF World Energy | 5% |
| Janus Henderson – Balanced | 5% |
| FE-Axa growth portfolio composition | |
| Blackrock – GF Global Dynamic Equity | 20% |
| First State – Asia Opportunities | 20% |
| Janus Henderson – Balanced | 20% |
| Schroder – ISF Global Emerging Market Opportunities | 19% |
| JPMorgan – Japan (Yen) | 6% |
| Blackrock – GF World Energy | 5% |
| Fidelity – US Dollar Bond | 5% |
| Janus Henderson – Horizon Asia-Pacific Property Equities | 5% |
Source: FE Advisory, as of the end of March
The model portfolios “emphasise quality with the main focus on risk diversification”, Li said in the statement. He noted that clients should allow these portfolios at least 18 months to give them time to deliver.
Separately, FSA features on a monthly basis the allocation in one of the three portfolios offered by FE Advisory. The featured portfolios are managed using a proprietary optimisation system with strategic asset allocation insights from AKG to complement the shorter-term tactical asset allocation decisions made by FE’s research team.
The performance of the FE-Axa model portfolios versus the MSCI AC World Index and international mixed asset sector since the portfolios’ inception.
