Multi-asset  

Fund review: Architas multi-asset

Fund review: Architas multi-asset

Architas has unveiled a global multi-asset fund to meet investors’ growing demand for income. The Architas Diversified Global Income fund will aim to provide what it calls an “attractive” level of income – it currently yields 5.4 per cent based on the launch portfolio – as well as capital growth over the medium- to long-term.

The retail share class will be priced at 60bps for the annual management charge, with an ongoing charges figure capped at 140bps. The fund will be a multi-asset fund of funds managed by the group’s chief investment officer, Caspar Rock, and investment manager Harry Darke.

The launch comes at a time when investors are looking at income-generating investments over the traditional annuity route.

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It will invest in both active and tracker funds as well as exchange-traded funds and investment trusts across a spectrum of developed and emerging market equity and bonds, alternatives and cash and will have an element of currency exposure. It will also have exposure to alternative income sources such as specialist property and renewable energy.

It will not be risk-profiled as its principal aim is to provide attractive and sustainable income through managing the risks. It has been measured against the eValue ‘risk levels’ and would sit within profile 4 of 7 based on its initial portfolio mapping.

www.architas-mm.com

Comment:

Another multi-asset fund launched in time for the retirement freedoms. Even though it seems every fund group is launching a multi-asset fund, one must not forget the reason for it.

They are a popular tool – both for those starting out and veterans. And understandably so. Some portfolio returns were spectacular.

Of course not forgetting the price, multi-asset funds can be a lot cheaper than buying the assets individually or through separate funds. This fund in particular comes from a well-known investment house – Architas manages in the region of £800m of funds and Caspar Rock has managed many funds over the years across different asset classes and geographies.

By making sure there is allocation to equity, fixed income, cash, property and alternatives, this fund can call itself truly multi-asset.