The newly debuted sector “contains products with the objective of managing returns within specified volatility parameters,” and features 83 funds with combined assets under management of £19.3bn, the IA verified.
Announced days after the UK voted to leave the EU, the IA cited the need for a new sector to accommodate the growing number of outcome-focused fund solutions that act as a “one-stop shop for asset allocation or risk management.”
Standard Life Investment’s £10bn MyFolio range, overseen by Bambos Hambi, is one such solution that fits this new mould.
Hambi’s funds join Aviva Investors multi-asset line, Henderson’s core income products, Architas’ multi-asset blended and passive vehicles, Invesco Perpertual Balanced Risk funds and Legal & General Investment Management’s multi-index funds.
Allianz, BlackRock, Cornelian, Rathbones and Santander will also have multiple products that sit within the new sector.
The IA added that its Sectors Committee would be keeping a close eye on the sector for 12-months to ensure the best interests of investors were being met and did not rule out the possibility of introducing further sub-categories.
