Architas: More advisers are choosing multi-asset

Advisers are set to increase their use of multi-asset funds this year, according to a survey by Architas.

The company - which itself provides a range of active, passive and blended multi-asset funds - questioned 262 advisers in April and May and found that 83 per cent said they would be ‘likely’ or ‘very likely’ to increase multi-asset exposure in 2013.

Diversification and risk profiling were cited as the most important reasons for selecting multi-asset funds by the advisers in the survey.

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Architas head of business development Cedric Bucher said: “A diversified portfolio is likely to enjoy much lower volatility than a fund invested solely in one asset class.

“There is also a move away from a stock picking approach by advisers. This is being driven in part by regulatory pressures, as a result of the RDR, and the increased emphasis on client suitability. Risk profiled solutions, with regular and automatic rebalancing, can reassure advisers that investments will remain appropriate.”

Statistics from the Investment Management Association showed that multi-asset funds attracted £2.1bn of net retail sales in the first half of 2013.