Adviser Fund Index

Financial Express Adviser Fund Index (AFI)

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Objectives

The Adviser Fund index, or set of indices, are designed to act as indicators of the UK funds market. The AFI provides a benchmark against which the investment community can compare fund portfolio performance, as well as offering a relevant flagship index for the funds market.

The Indices

There are three themed indices that currently form the AFI

Financial Express Adviser Fund Index Aggressive
Financial Express Adviser Fund Index Balanced
Financial Express Adviser Fund Index Cautious

The Constituents

There are three portfolios of funds, one for each index.

We have formed the AFI Panel, a representative group of the UK's leading financial advice firms. Each firm selects a portfolio of funds for each themed index, according to the skills and expertise of their organisation.

The portfolios that the Panellists submit must have a maximum of 10 holdings, which are weighted by the Panellist.

Financial Express aggregates each Panellist's portfolios to obtain an overall list of constituents and weightings.

Allowing for similar selections by different Pannellists, each index would have between 50-100 constituents.

Criteria for the Selection of Fund Portfolios

For the AFI Aggressive, Balanced and Cautious indices, funds must be derived from the 'UK Authorised Unit Trusts and OEICs' universe.

The Panellists must assume that the 'client' is saving for a pension at 65. For example:

AFI Cautious portfolio - Panellists would choose funds suitable for a person in their late 50s
AFI Balanced portfolio - Panellists would choose funds suitable for a person in their mid 40s
AFI Aggressive portfolio - Panellists would choose funds suitable for a person in their late 20s

Panellists are also required to weight their fund selections accordingly.

Mechanics

The AFI set of indices is calculated daily.
Composition of the portfolios are reviewed and rebalanced semi-annually.
All values are calculated on a total net return, bid / bid, mid / mid basis.
Each index starts at 100.

Financial Express Adviser Fund Index (AFI) back print page Objectives The Adviser Fund index, or set of indices, are designed to act as indicators of the UK funds market. The AFI provides a benchmark against which the investment community can compare fund portfolio performance, as well as offering a relevant flagship index for the funds market. The Indices
There are three themed indices that currently form the AFI Financial Express Adviser Fund Index Aggressive Financial Express Adviser Fund Index Balanced Financial Express Adviser Fund Index Cautious
The Constituents There are three portfolios of funds, one for each index. We have formed the AFI Panel, a representative group of the UK's leading financial advice firms. Each firm selects a portfolio of funds for each themed index, according to the skills and expertise of their organisation. The portfolios that the Panellists submit must have a maximum of 10 holdings, which are weighted by the Panellist. Financial Express aggregates each Panellist's portfolios to obtain an overall list of constituents and weightings. Allowing for similar selections by different Pannellists, each index would have between 50-100 constituents. Criteria for the Selection of Fund Portfolios For the AFI Aggressive, Balanced and Cautious indices, funds must be derived from the 'UK Authorised Unit Trusts and OEICs' universe. The Panellists must assume that the 'client' is saving for a pension at 65. For example: AFI Cautious portfolio - Panellists would choose funds suitable for a person in their late 50s AFI Balanced portfolio - Panellists would choose funds suitable for a person in their mid 40s AFI Aggressive portfolio - Panellists would choose funds suitable for a person in their late 20s Panellists are also required to weight their fund selections accordingly. Mechanics The AFI set of indices is calculated daily. Composition of the portfolios are reviewed and rebalanced semi-annually. All values are calculated on a total net return, bid / bid, mid / mid basis. Each index starts at 100.