Multi-asset funds under fire for 'detracting from returns'

Mr Brookes feels the product can be more tactical in terms of asset allocation than a traditional multi-asset fund would be.

Paul Milburn, investment analyst at Lowes Financial Management in Newcastle said he used multi-asset funds in some of his lower risk model portfolios, where he hoped clients would benefit from the tactical asset allocation decisions managers may make during different periods of the investment or market cycle.  

He added: "Multi-asset funds can also provide a further level of diversification within our own model portfolios, particularly those which invest in what we would call more esoteric investments which we wouldn’t or possibly couldn’t allocate to directly ourselves. When selecting multi-asset funds we therefore look to ensure that they offer at least one of these benefits."