Multi-asset  

Pension reforms open new market

This article is part of
Spring Investment Monitor - March 2015

EXPERT VIEW

Patrick Connolly, certified financial planner, Chase de Vere

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“Investment houses didn’t initially seem sure how to respond to the pension changes, but they have now mostly concluded that the answer is a multi-asset income fund. As a result, we’re seeing more of these products being launched, revamped or promoted.

“This is a trend that seems likely to continue to the extent that most investment companies will have these funds in their armoury.

“Multi-asset income funds may have an important role to play, not just in terms of the new pension rules, but also in terms of investors’ need for income and diversification. So for investment companies, these products can effectively kill two birds with one stone.

“However, it would be a mistake for advisers to think that one multi-asset income product is necessarily like another. There are significant differences in terms of quality, approach and performance, and, as ever, the advisers’ job will be to separate the wheat from the chaff.”

JPM Multi-Asset Income

Managers: Talib Sheikh and Michael Schoenhaut

Assets under management: £387m (for UK fund)

Launch date: June 2009

Sector: IA Mixed Investment 20-60% Shares

Performance since launch:* 75.26%

Threadneedle Global Multi Asset Income

Manager: Toby Nangle

Assets under management: £3.2m

Launch date: July 2014

Sector: IA Mixed Investment 20-60% Shares

Performance since launch:* 7.05%

Old Mutual Generation Target 4:4

Manager: John Ventre

Assets under management: £73.5m

Launch date: November 2012

Sector: IA Unclassified

Performance since launch:* 20.88%

Newton Multi-Asset Income

Managers: Paul Flood and Nick Clay

Assets under management: £11.2m

Launch date: February 2015

Sector: IA Flexible Investment

Performance since launch:* 0.12%

Schroder Global Multi-Asset Income

Managers: Aymeric Forest and Iain Cunningham

Assets under management: Not yet available

Launch date: December 2014

Sector: IA Mixed Investment 20-60% Shares

Performance since launch:* 1.86%

Franklin Diversified Income

Manager: Toby Hayes

Assets under management: £4.78m

Launch date: May 2014

Sector: IA Flexible Investment

Performance since launch:* 8.98%

BlackRock Global Multi-Asset Income

Managers: Michael Fredericks, Justin Christofel and Peter Wilke

Assets under management: £76.88m

Launch date: January 2015 (for UK strategy)

Sector: IA Mixed Investment 20-60% Shares

Performance since launch:* 1.64%

Psigma MPS Cautious Income

Manager: Tom Beckett

Assets under management: Not yet available

Launch date: September 2014

Nearest relevant peer group: Arc Sterling Cautious PCI

Net performance since launch:* 2.59% (Source: Psigma Investment Management)

Aviva Investors Multi-Strategy Target Return

Managers: Peter Fitzgerald and Dan James

Assets under management: £439m (Share Class 2)

Launch date: July 2014

Sector: IA Targeted Absolute Return

Performance since launch:* 7.35%

*All performance data to March 4 2015 / Source: FE Analytics