Fund groups have been clamouring to get involved in the multi-asset space, with one eye no doubt on the changes that will come from the implementation of RDR.
It seems certain that outsourcing asset allocation will become a more popular option in the coming months, especially as advisers come to realise the additional demands that will be placed on any professional that wishes to call themselves independent from next January onwards.
Outcome-driven
Investec appears to be on the right lines with its sensible proposal – a ‘managed solutions’ range of outcome-driven multi-asset funds, alongside its established specialist funds. Rival groups have been unveiling similar proposals, and there will be more announcements to come before the end of this year.
But what use are multi-asset funds for those who consider asset allocation their day job? If the manager is skilful enough, and accessible at a reasonable price, perhaps there is a case for using multi-asset funds, especially if you want help managing your way though the risk-on/risk-off days.
Common sense
As Richard Hancock, investment analyst at Financial Management Bureau, told our freelancer James Smith this month: “[the] concept of investing based on how assets behave relative to each other, rather than what they are, is common sense”.
Just like absolute return funds, the long-term success or failure of multi-asset funds will ultimately come down to the quality of management behind them. The likes of Philip Saunders at Investec, Percival Stanion at Barings or David Jane at TM Darwin will certainly be among those hoping that experience counts when investors go shopping.
You can read more about multi-asset funds in James’ article, to feature in the May issue of Portfolio Adviser.
