They offer different complexions of asset classes for those favouring different types of investing approach, and they allow a considerable degree of discretion on the part of the fund manager.

The Investment Management Association has categorised multi-asset funds as Mixed Investment, with the range of investment in shares from 0 per cent to 35 per cent, 20 per cent to 60 per cent and 40 per cent to 85 per cent.

They were renamed from the cautious managed sector when it became apparent that many funds had far too many share-based investments to qualify as ‘cautious’.

Multi-asset funds are helpful for financial advisers because it allows them to access an off-the-peg fund with access to a range of different asset classes without the need for an adviser to construct his own portfolio for the client.

This is particularly helpful at the lower end of the scale with a client who does not have much to invest, or is investing for the first time.

However, net retail sales last year were considerably lower than the previous year, as more people piled into fixed income funds, and then equity funds, as markets improved.

But, with the arrival of RDR, these funds are still useful and managers are launching many new funds aimed at this sector, often bearing a distinctive investment philosophy, be it passive, or having derivatives, or whatever.

Multi-asset funds have proven to be useful over time and no doubt as more advisers settle down with RDR, they will continue to be a popular concept to buy into.

Hal Austin editor of Financial Adviser