The role of multi-asset funds in a volatile environment

This is largely due to the fact that multi-asset funds give clients access to several asset classes at once, without having to invest vast amounts of money. 

It may be an interesting time for advisers to be using multi-asset funds, not least because the global economy appears to be troubled. 

The US and China have made little progress to resolve their trade differences, the UK could be headed for a hard Brexit in just over two months and the US bond market appears to be predicting a recession, seen through the US inverted yield curve. 

But as with everything in life, multi-asset funds do pose their risks. Some in the industry warned about the risks of a mismatch in investment goals and fund objectives. 

This means some advisers may be choosing multi-asset funds that are not in line with the client’s understanding of the fund’s objective. 

But how can multi-asset funds be helpful to investors in this volatile economic landscape? 

The report, which can be read by clicking the link in the image above, qualifies for an indicative 30 minutes' worth of CPD. 

saloni.sardana@ft.com