Fountain’s investment committee, our approach
Here at Fountain, we’re committed to breaking down investing into easy to understand themes and opportunities, so you know exactly what you are investing into. Fountain takes a holistic approach to investing that revolves around your values, goals, and investment objectives.
Our investment committee plays a key role by reviewing different funds and investment opportunities. Essentially, we look for these key features: Selection, fit and accessibility.
We’ve made a conscious decision to not create our own in-house portfolios, and remain confident that we can source high quality and affordable funds through the largest providers in the UK investment market. We focus our resources into exploring and researching through a variety of providers to curate investment opportunities that meet the needs of our customers.
We’ve always enjoyed connecting with our customers and after hosting so many community events, we want to focus on funds that fit their investing needs.
For example: We’ve purposely shied away from more complex products because we haven’t gauged any appetite from our prospective customers. On the other hand, we’ve heard time and time again that younger investors are eager to invest in themes like Technology. As a result, we’ve sourced for funds that are exposed to the technology sector.
We want to encourage accessibility and we’ve set out a few guiding principles:
Firstly, we’re firm believers in the “pub test”. We prefer investment opportunities that people can easily understand and discuss with their friends. This allows investors to take a closer interest into where their money is growing. We’re confident that this is a key part of promoting financial knowledge, at Fountain and beyond.
Secondly, we only work with fund providers that offer transparent and clear fund information. As a business, we’ve always been frustrated by the abundance of jargon and obscurity in the industry, and want to offer investments where our customers have easy access to information to continuously learn more about their investments.
Thirdly, we partner with providers that can seamlessly integrate with our impressive suite of technologies. This allows us to build and curate a digital journey that meets the needs of our audience, and ultimately simplifies the investing experience.
Finally, we carefully review the costs of funds that meet our described criteria. As an investment committee, we look for funds with competitive fee structures relative to the value that they provide.
Exchange Traded Funds (“ETF”)
Finally, for our clients to easily access investment themes, strategies and/or diversified portfolios, we believe ETFs are the most suitable way for our customers to achieve long term capital growth and diversification.
Briefly, An exchange-traded fund, is a security that tracks an index, a commodity, bonds, or a basket of assets. For example, if you are looking to buy an ETF that is exposed to the technology sector, it will likely be formed as a basket of large technology companies. Overall, ETFs are an accessible way to invest in a large number of securities, all at once.
The Investment Committee
In line with the description stated above, our objective remains to find affordable, passive, diversified funds, with varying risk levels to meet the needs of a diverse customer base. Our investment committee convenes regularly to establish the appropriate controls and processes to ensure that we are responsibly fulfilling “our philosophy” and guarantee that we’re acting in the best interest of our customers.
For the avoidance of doubt, our objective is not to time the market and/or predict economic trends in the pursuit of superior economic returns. Put simply, we want to help people invest their hard earned money into themes and opportunities that suit their needs and interests.