Advisers set to increase multi-asset fund exposure

Research by a Dutch asset management company has revealed that 63 per cent of financial advisers are set to increase their clients’ exposure to multi-asset funds over the next three years.

According to Hague-based NN Investment Partners, 34 per cent cited the automatic diversification factor as the reason, while 24 per cent said it reduced the amount of time needed to monitor asset allocation.

Multi-asset funds will be in greater demand over the next three years according to 47 per cent, managed on absolute return basis. Only 16 per cent disagreed with this.

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However, advisers would like to see more innovation in the sector, with 42 per cent of advisers believing more innovation is needed in the sector to serve the full range of investors’ risk profiles.