Multi-asset fund focuses on ‘equity-like’ returns

Multi-asset fund focuses on ‘equity-like’ returns

Pictet Asset Management’s new multi-asset portfolio will be available to advisers and their clients on several fund platforms.

The FP Pictet Multi Asset Portfolio, managed by Percival Stanion, Andrew Cole and Shaniel Ramjee, can invest in assets including bonds, equities and property, and will seek returns of cash plus 4 per cent a year, net of fees, over a period of three to five years.

Mr Stanion said: “The fund is aimed at investors who are looking for steady returns while controlling the volatility of their portfolio.”

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Cofunds will offer the fund with a reduced investment manager fee of 0.275 per cent a year via the E share class until 31 December or the first £400m.

Other platforms giving access to the fund include Fidelity, Hargreaves Lansdown, Transact, Novia, FNZ, James Hay, Pershing, Alliance Trust, Zurich, Aviva and Aegon.

The management trio, who joined Pictet Asset Management from Baring Asset Management in November 2014, will seek to actively allocate assets in response to changes in the economic environment or market valuations, with an aim of reducing volatility and managing downside risk.

Previous research has suggested an increased interest in multi-asset funds aiming for equity-like returns.

In February Rod Aldridge, head of UK wholesale distribution for Barings Asset Management, said that nearly a quarter of intermediaries surveyed by the firm claimed to be very favourable towards multi-asset products.

He said: “Multi-asset investing is becoming an increasingly popular investment class in the UK.

“This is being driven by the fact that multi-asset strategies aim to deliver equity-like returns with less risk than holding an equity-only portfolio.”

Key features of the fund
Aims for returns of cash plus 4 per cent a year, net of fees, over a period of three to five years
Available on platforms including Fidelity, Hargreaves Lansdown, James Hay and Cofunds
Fund managers will actively allocate assets in response to economic changes

Adviser view

Sebastian van Mook, adviser for Shrewsbury-based Abacus Associates Financial Services, said: “Getting equity-like returns without the volatility is an interesting concept but on the surface it seems too good to be true.

“Getting good returns without the risk has always been the holy grail of investing.”