Analysis: Why professional investors buy multi-asset funds
Multi-asset, or asset allocation funds, have been an investor favourite for years. But why would a professional investor invest in these one-stop shop funds?
Multi-asset, or asset allocation funds, have been an investor favourite for years. But why would a professional investor invest in these one-stop shop funds?
While it’s no secret that passive, low-cost products are relentlessly increasing their market share, investors’ hunt for yield has also buoyed sentiment towards flexible and unconstrained mandates, according to Morningstar.
More than a third (36%) of UK advisers are mainly using multi-asset strategies with clients, up from less than a fifth (18%) last year, research from Aegon UK has found.
Aberdeen Asset Management has launched two multi-asset funds in Singapore, the firm’s first such funds to be offered in the city-state.
Alternative investments from aircraft leasing to renewable energy are still an attractive option for multi-asset funds, despite fears the asset class is approaching bubble territory, says Kames Capital’s senior multi-asset investment specialist, Nick Edwardson.
Schroders has launched a multi-asset fund for Johanna Kyrklund designed to weather potential storms in equity and bond markets.
Cautious on equities and fixed income, Sheldon MacDonald prefers funds with high conviction, as he seeks stability over the long term rather than quick gains on the upside.
Investors have been pouring money into multi-asset funds. What’s exactly their appeal, which strategies offer most value and how can you identify them?
Mirae Asset Global Investments (HK) has launched a Luxembourg-domiciled Asia Pacific multi-asset income fund targeted to institutional investors and high-net-worth individuals.
Charles Stanley has launched five new multi-asset funds as part of a new Personal Portfolio Service for smaller clients.
Coutts is offering access to five risk-graded multi-asset passive funds via a new online platform, Coutts Invest.
AJ Bell’s first fund launch, a range of five diversified multi-asset funds that are risk-rated from cautious to adventurous, will start trading on 18 April 2017.