DECEMBER 2020
EDITION

VIEW ONLINE
SUBSCRIBE

Register with PP

Newsletter, Jobs & Event Alerts

Latest

FE Analytics launches Reduction in Yield Calculator

24 May 2018

FE has launched a new tool designed to offer paraplanners and advisers a more efficient approach to calculating the impact of all costs on portfolio returns.

The FE Analytics+ Reduction in Yield (RIY) Calculator allows adviser firms to assess the impact of costs in a single figure, rather than rely on projections from product providers.

The FCA requires advisers undertake appropriate cost comparisons, factoring in all costs, when recommending investments to clients. FE said the reduction in yield calculation has become a popular way to do this, stating that its new tool offers advisers an alternative to what can often be a lengthy, manual process.

Matt Surfleet, commercial director at FE, said: “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 plans 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 calculator gives clients an inclusive view of the impact of costs on their portfolio and on returns in the future, fully integrated with FE Analytics.

The tool is free of charge for existing users and can be used for all investment types, the firm said.

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, described the calculator as 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.”

She added: “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.”

Comments are closed.

Do NOT follow this link or you will be banned from the site!