Case Study: A Marriage of More Than Convenience

In this blog, we explain how the deep relationship between Vanguard and EV delivers value to advisers looking for simplicity when locating the right investment solutions for their clients’ needs.

In one of those classic old tunes, Frank Sinatra warmed up the airwaves with immortal lines: “Love and marriage. Love and marriage, go together like a horse and carriage.” Admittedly, this is one for sociologists and guidance counsellors to mull over (while younger folk ponder what on earth is a carriage). Still, the fact remains that great partnerships are the foundation for good in life – and a perfect example is a strong relationship between EV and Vanguard.

How EV Risk-Ratings can help advisers provide better client outcomes

Since 2017, both EV and Vanguard have played a key role in bringing innovative thinking and clever tech to the fore in financial services – combining Vanguard’s low cost, easy to understand LifeStrategy investment solutions with EV’s consistent and robust fund risk-rating processes. Together, we give advisers the confidence to leave the investment side of things to us, freeing them to devote their time to building relationships with those they value most – their clients.

Here comes the ticker tape warning: The.Past.Is.Not.Necessarily.A.Guide.To.The.Future.

Yet, a strong track record is difficult to ignore. Our partnership has been helping to foster trust and confidence in the financial solution offered.

First launching back in 2011, Vanguard’s LifeStrategy fund range has revolutionised the multi-asset fund space, offering five ‘all-in-one’ risk-managed portfolios investing in a globally diversified range of equities and bonds. Its straightforward and uncomplicated approach to fund management has found favour with investors and advisers alike, collectively amassing some £35bn in assets at the time of writing. The success of LifeStrategy over the past decade has been built on a simple but carefully crafted philosophy: balancing risk and return at low cost, adding value to advisers’ investment propositions by enhancing rather than compromising portfolio performance.

All this success is the culmination of more than a smart investment strategy. Vanguard’s relationship with independent risk-rating providers has underpinned its achievements – enabling advisers to quickly identify and recommend suitable investment solutions to match each client’s risk appetite.

How do we risk-rate funds?

Each fund is risk-rated against EV’s Standard 1-5, 1-7 and 1-10 risk-rating scales across different time horizons. To measure risk reliably, it’s vital to focus on the future rather than the past, taking into account various random variables. EV addresses this by applying a wide range of potential economic scenarios generated by a stochastic asset model, predicated to assure advisers that each portfolio will behave in the way envisaged. Clear and convenient solutions for end clients are grounded in the deep application of the science of probability, all happening behind the scenes of adviser-client conversations.

To learn more about our fund risk-rating methodology and how it can help promote your range of funds or portfolios, please download our helpful guide.

Long-standing partnerships deliver value to advisers

In the words of Neil Cowell, Head of UK Intermediary Distribution at Vanguard,

“EV’s risk-rating service, expertise and innovative technology are proving hugely valuable to advisers using LifeStrategy with their clients. Our relationship with EV means we’re able to offer low cost, uncomplicated solutions across all economic conditions to help clients achieve their financial goals.”

EV’s Chief Commercial Officer Gary Wheeler adds his thoughts on this positive partnership as we arrived in 2022:

“In a financial world that is becoming increasingly complex, there’s a lot to be said for making things simple. And that’s why our partnership with Vanguard is so successful; we have a shared drive to untangle this complexity and offer clarity to our clients. We’re excited about continuing working with Vanguard; to develop and embed new technologies that help advisers give their clients the peace of mind that they crave.”

This partnership is here to stay, and its outcomes and achievements are well-received in the professional advice world. Advisers focusing on listening and responding to clients’ desires and future expectations understand that relationships built to last are good for business.

So what next?

At EV, we provide the UK's fastest-growing risk rating service in the market, boosted by the UK's most used risk profiler by advisers with their clients.

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