The W1M Multi Asset Funds are the latest additions to Scopic Research’s Multi Asset DNA research service, which currently includes research analysis and DNA graphics covering 119 multi asset portfolios from 19 different fund groups.
W1M was formed following the merger between Waverton Investment Management Group Limited and London and Capital Group Limited in July 2024, but for now each portfolio in the multi asset suite continues to be branded under the Waverton name.
To be included, all multi asset portfolios need to pass our robust criteria – including passing extensive portfolio manager interviews.
In the case of W1M, not only did Scopic Research interview the latter, but they also conducted separate meetings with leading members of the asset class teams whose stock selections across equities, bonds, real assets, absolute return strategies, cash and portfolio hedging strategies, are key to how the portfolios are formed.
Outcome: Long term growth / Volatility guide:
- Waverton Multi Asset Defensive: Capital return: CPI + 2% / Vol: 3% – 10% *.
- Waverton Multi Asset Cautious: Capital return: CPI + 2.5% / Vol: 4% – 12% *.
- Waverton Multi Asset Balanced: Capital return: CPI + 3% / Vol: 5% – 14% *.
- Waverton Multi Asset Growth: Capital return: CPI + 3.5% / Vol: 6% – 16% *.
Separate to the main W1M multi asset suite Scopic Research have also introduced the following portfolio:
- Waverton Multi Asset Income: Capital return: CPI + 2.5% / Vol: 4% – 12% * / Income: Consistent yield.
(*) These figures are guideline expectations only.
W1M Multi Asset Funds
Each portfolio aims to deliver an asymmetric return profile by achieving two outcomes.
Firstly, an inflation-plus capital growth target and secondly, to limit the extent of the portfolio’s participation in falling equity markets, particularly during more pronounced equity market selloffs.
There is a small cohort of mainly directly invested multi asset portfolios that overlays a permanent protective hedging strategy, and this is one of them. The protection strategy is constantly ‘dialled up and down’ to help control each portfolio’s sensitivity to market volatility as deemed appropriate.
Paul Ilott, MD of Scopic Research said,“In our view, the composition of the asset buckets exhibit a level of appreciation for one another that just can’t be achieved by those peers who instead use a fund of funds approach.
“This speaks to the use of direct securities and the transparency, control, and precision that this affords the multi asset team when articulating its decisions, and also to the wider team’s close-knit and collaborative working relationship. This all leads to a thoughtful and holistic approach when constructing the portfolios.
“Another area of note is that the active share (for the equity component within each portfolio) is relatively high – currently at around 87%.
“This means that the composition of each portfolio’s equity component is significantly different from that of a global equity market capitalised index.
“For context, having 0% active share would mean full index replication. Together with a light touch to tactical asset allocation and long holding periods, this means that stock selection is likely to be the predominant driver of returns.”
James Mee, Co-Head of Multi-Asset at W1M said, “We are delighted to partner with Scopic Research as our Multi-Asset range continues to build on a strong and established track record of the Multi-Asset Growth and Multi-Asset Income Funds and as our Defensive, Cautious and Balanced Funds approach their third anniversary.
“The range is nearing £2bn in assets under management, and as we grow, independent, high-quality research becomes even more important.”
George Bromfield, Head of Adviser Solutions at W1M added, “Scopic’s detailed reports provide valuable transparency around portfolio construction, asset allocation and risk management. At W1M, we believe this partnership enhances understanding, reinforces accountability and supports confident, long-term investment decisions for our financial adviser partners.”
About the Scopic Research Multi Asset DNA Reports Service
The Multi Asset DNA reports service is available via the Scopic Research website and enables intermediaries to filter our database of DNA reports by using combinations of investment outcomes specifically designed to reflect clients’ needs for different classifications.
This includes growth, income delivery, volatility management, likely volatility risk versus broader equity markets, methods for assessing ESG related risks, and a range of different investment styles.
Scopic Research note one of their strengths is being able to discern long term embedded biases in a manager’s approach together with individual manager preferences and their likely reactions under different market conditions.
This is designed to anticipate what a portfolio’s pattern of returns is most likely to look like in a range of different market scenarios.
Any multi asset fund where performance doesn’t make sense in light of this analysis is not covered – even if it passes earlier tests.
The service also includes a qualitative based portfolio blending tool designed to help intermediaries visualise the possible diversification benefits from combining up to four multi asset funds together, as well as a quarterly sentiment indicator that shows the current direction of sentiment towards a broad range of asset classes as expressed by some of the UK’s leading multi asset teams.
Intermediaries can register for the service for free at www.scopicresearch.co.uk
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