Simplifying HCI’s investment process with Tailored MPS
How did the adaptability of FE Investments' Tailored MPS provide HCI with a process that was more simplified, but built around their existing models?
HCI Financial Services were looking at how their centralised investment proposition (CIP) could evolve to ensure that it was market leading and also how they could simplify it. It was important to reduce the reliance on specific members of their team while maintaining the level of service their clients expect.
Partnering with FE Investments, who have award-winning managed portfolios, to create a Tailored solution built around HCI’s existing model portfolios has enabled a more consistent advice process across the business, and outsourced some of the investment process to reduce keyman risk.
Who are HCI Financial Services?
- - HCI is an award-winning, Chartered independent Financial Advice firm based just outside Chester
- - They have 12 RIs
- - They advise around £330m of client assets*
- - They serve a broad range of clients, but a lot are salaried employees with an average invested portfolio of between £80k and £150k
- - Their clients are mostly in their late 40s to 50s, looking for retirement and tax planning services
*As at February 2024
Why were HCI looking for a partner to help manage their investments?
Previously, HCI had a CIP which consisted of their own model portfolios. This approach offered clients an exceptional level of service and the investment committee possesses a vast amount of investment experience. However, there were some gaps in the committee’s experience, the approach was very labour intensive, and it relied on a number of key individuals. Despite the effort involved, the CIP portfolios were not used by all the firm’s advisers - with some preferring to pick their own funds or use DFMs instead.
As such, HCI were looking to outsource some of the heavy lifting to a partner. They identified a need for evolving their CIP to deliver a simplified and consistent methodology for their advisers to use. It was also necessary to maintain the firm’s excellent level of service and superior client outcomes, whilst still being competitive in terms of cost.
HCI also wanted a partner that could support the Investment Committee with complementary experience and provide industry leading research and data to support decision-making.
The Tailored solution with FE Investments
FE Investments was able to build a Tailored solution for HCI. This meant managing growth portfolios flexibly to keep them in line with HCI’s previous models and outlook and ensure minimum disruption for the business and their clients. This allows HCI to avoid a significant keyman risk and reliance on certain members of the team since the FE Investments team now handles the administration of managing the portfolios. FE Investments meets with the HCI Investment Committee and provide access to their data insights to better inform the investment decisions. The two firms also continue to work in partnership and are working on building an ESG investment proposition.
"We are still in the process of introducing our clients to the newly established FE Investments models, but are pleased with the outcomes so far and the models are performing well compared to other discretionary models."
Working with FE Investments
For HCI, the availability of the team at FE Investments was very important when making the decision of who to partner with. Having a local team member on hand to hold face-to-face meetings and provide an appropriate level of support, as well as regular access to the investment team and FE Investments’ CIO, Rob Gleeson set FE Investments apart.
Tailored MPS
FE Investments' Tailored MPS is a custom MPS for advisers which enables you to shape our core investment capabilities and expertise around your unique business objectives and client book. We handle the day-to-day investment management and administration, while you focus on building and maintaining strong client relationships.
If you’d like to find out more about how Tailored or any of our other solutions can help your business, arrange a consultation with one of our expert team today.
Speak to us about Tailored MPS today
Important information:
This is a marketing communication, intended for financial advisers only. Not for use by retail investors. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. The value of investments and the income from them may go down as well as up and you may not get back the amount originally invested.