Jamie Farquhar, head of sales for JP Morgan Adviser Solutions, says multi-asset funds tend to be needs-targeted and created to provide a solution to a specific client requirement.
He adds this type of fund can constitute the core of a client portfolio.
Francis Ghiloni, director of distribution and client management at Scottish Widows Investment Partnership, agrees multi-asset funds can be used as a single, diversified ‘one-stop shop’.
He says multi-asset funds allow the client to let the manager take care of all asset allocation decisions.
He says: “Multi-asset funds can also be used as a core holding to which investors can add a range of other ‘satellite’ funds, depending on their aims and appetite for risk.”
If we think of the UK’s population being normally distributed by reference to attitude to risk, then most clients could benefit from a multi-asset approach, according to Paul Rutland, investment business development manager of Prudential.
Peter Fitzgerald, head of multi-asset retail funds at Aviva Investors, says both multi-asset and multi-manager portfolios have an important role to play in a number of areas for investors.
He says: “We believe multi-asset portfolios deliver a very cost effective solution to IFAs who want to ensure that portfolios remain suitable for their clients beyond the point of sale.
“We achieve this by managing the portfolios to defined risk targets.”
