Many advisers like to blend multi asset funds as part of their CIP – but what do you need to consider when deciding which multi asset funds to blend?
Here, Paul Ilott, of multi asset research specialists, Scopic Research discusses what factors to focus on with Simon Evan-Cook of Downing Fund Managers.
The key takeaways for advisers and paraplanners from this video:
• All multi asset funds have their own embedded biases that impact upon their patterns of returns.
• Understanding these biases can help with blending multi asset funds together.
• Style, capitalisation size, and the types of instruments used, are all sometimes overlooked, but can make a significant difference to the result of blending – style being the most significant.
• Ignoring embedded biases can mean that the multi asset funds chosen for blending all perform well, or perform poorly, at the same time.
Multi asset research on over 120 funds is available to paraplanners and advisers for free at www.scopicresearch.co.uk
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