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FE Advisory extends model portfolio strategy

FE Advisory Asia has rolled out model investment portfolios tailored for Axa in Hong Kong, extending the FE portfolio range to reach IFAs.
FE Advisory extends model portfolio strategy

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.

Part of the Mark Allen Group.