Active Management Service

FMD’s Active Management Service (AMS) allows you to automatically align the managed investments within your portfolio, with the recommendations of FMD’s Investment Committee:

Our Investment Process

FMD’s Investment Committee (IC) meets regularly to review the investments that comprise your portfolio and to evaluate any new opportunities that become available.

In reviewing your portfolio, FMD’s IC utilises research from various managed fund research houses, a variety of direct share research providers and the fund managers themselves.

The recommendations of FMD’s IC are then reviewed by our research partners, Hillross Research and van Eyk Research.

Based on the research available, FMD’s IC will recommend that your existing investments be retained or replaced (for example, due to management changes or consistent under-performance).

On other occasions, FMD’s IC may introduce an additional investment to your portfolio.

Our Standard Portfolio Review Process

Ordinarily, your portfolio would be brought in line with the recommendations of FMD’s IC at the time of your portfolio review.

In some cases, this may be several months after FMD’s IC has made their recommendations.

Using Our Active Management Service

With our Active Management Service (AMS), your portfolio is brought in line with the recommendations of FMD’s IC, at the time the IC makes its decision.

Where a change is recommended, you will receive written advice outlining the change that will be made to your portfolio; our investment committee’s basis for making the change; an outline of the change to your asset allocation; and explanation of any changes to the cost of your portfolio. You will also be provided with Investment Profiles and Short-Form Product Disclosure Statement (PDS) for any new investments.

At the same time, FMD automatically implements these changes for your portfolio.

Advantages

AMS provides the following advantages:

Time Efficiency: FMD’s IC meets regularly to discuss your portfolio and make recommendations to retain, replace or add additional investments. Rather than waiting until your portfolio review meeting to discuss these recommendations, with AMS, these changes will automatically be implemented for your portfolio.

Access to Information: Where a change is recommended, you will receive written advice outlining the change that will be made to your portfolio; our investment committee’s basis for making the change; an outline of the change to your asset allocation; and explanation of any changes to the cost of your portfolio. You will also be provided with Investment Profiles and/or short-form Product Disclosure Statement (PDS) for any new investments.

Automatic Implementation: At the same time, FMD automatically implements these changes for your portfolio.

Portfolio Rebalancing: AMS also allows FMD to rebalance your portfolio in line with to the long-term asset allocation recommended for your investment risk profile and to reallocate any excess cash holdings.

Prompt Response to Market Changes: AMS allows us to capitalise on opportunities and deal with threats as they arise. For example, if an investment receives a major downgrade, you benefit from the efficiency and convenience of having the necessary changes directly implemented.

More Time to Consider Your Future: Throughout the year, you will receive written advice regarding the FMD IC’s recommendations for your portfolio, in addition to the regular information you already receive directly from us. Therefore, during your portfolio review meeting, we can spend less time discussing your portfolio and more time focusing on your goals and objectives.

Ask your FMD Financial Planner about the potential advantages of implementing AMS for your portfolio.