Your Industry  

Multi-Asset Supplement - March 2014



    To try and address these needs multi-asset funds have become more and more popular as they should represent the epitome of diversification with a multi-asset approach – the clue is in the name after all.

    But not all of these strategies have delivered as well as might have been expected. Some are curtailed by the IMA sector they sit in, so are limited to the maximum equity exposure they can have, while some simply have missed the rally by being too cautious or defensive.

    Meanwhile the search for diversification continues apace with yet more ‘new’ and ‘original’ products appearing on the shelves. These include multi-asset exchange traded funds, and ideas such as multi-asset property funds.

    Add this to the usual list of alternative assets such as infrastructure, derivatives, hedge funds and the like, and the choice for an investor is simply never-ending.

    This explains why multi-asset funds remain so popular, but with discretionary fund managers, risk-targeted funds and model portfolios all looking to get in on the action, the question is what do these funds offer that is different.

    But as the performance research suggests, multi-asset funds are only as good as the manager and the strategy behind them. Some are traditional equities and bonds only, while others delve into the wide range of options to make their offering truly ‘diversifed’.

    Equities are seen by many to be the most effective asset class at the moment, particularly developed equities given the recent market rally, but emerging markets are once again starting to divide manager opinion on whether now is the time to reinvest.

    Meanwhile bonds, seen by some as the steadfast, perhaps boring, section of the asset class, are showing some signs of hope as yields start to rise and prices fall. But with US tapering set to continue will loose European monetary policy be enough to offset any negative consequences?

    As always, the key for advisers is knowing exactly what you’re getting for your client, and whether they are likely to benefit most from a traditional, simple approach, or if a pick’n’mix bag is the best way forward.

    In this special report


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. What was the average return from the IMA Property sector in 2013?

    2. How many multi-asset funds returned 100 per cent of more since the bottom of the market in March 2009?

    3. What is the average yield on dollar denominated emerging market debt? (at time of writing)

    4. Which two precious metals received the largest inflows in 2013 into exchange traded products, according to ETF Securities?

    5. Which multi-asset funds appeared to perform best in the five years from March 2009?

    6. The amount of assets invested in ETFs reached what level at the end of 2013?

    Nearly There…

    You have successfully answered all the questions correctly, well done!

    I completed this CPD in

    To bank your CPD please complete the form below.

    Were the stated learning objectives met?

    Why weren't they met?

    What did you learn from undertaking this CPD exercise?

    Why did you undertake this piece of learning?

    Any comments about this article or FTAdviser's CPD in general?


    Congratulations, you have successfully completed and banked this piece of CPD

    Already Banked!

    You have already banked for this article.

    To bank your CPD you must sign in or


    One or more questions have been incorrectly answered,
 please review your answers and try again.

    Please complete all the above text fields to bank your CPD.

    More Your Industry CPDSee my completed CPDSee all CPD