Multi-manager funds?

dunstonh

Now perhaps dunstonh ( assuming he manages his own clients' portfolios? ) could give me figures for 3 similar clients' portfolios - that would be a great help.

1% of amount invested with a min of £500 and max of £1500 (larger portfolios will see the £1500 reduced, sometimes to zero). 0.5% p.a. charged for servicing (funds paying trail commission rebated). annual bed&ISA and rebalancing, adjustments etc done at no charge. There are ten risk based sector allocated portfolios where the sector allocations are defined but the funds used within the sectors will vary depending on the discussions and objectives with the clients in question. So, whilst the allocations are set for each profile (but updated periodically), the funds may not be. So, there isnt a one-size-fits-all figure I can give you. However, I did a review last week for one that started in 2005 and that has returned 59.74% compared to 42.26% for Jupiter Merlin Income Portfolio (which is the comparable risk MM fund).

Aegis

feesarefare wrote: »

OK

Straight from Trustnet

3 most popular portfolios

Cautious

11% Sector Average 9.2%

Balanced

13.1% Sector Average 13.6%

Growth

14.2% Sector Average 13.3%

To 10 holdings in Cautious as @ 31/12/2010

TREASURY 4.25% GILT 7/9/39 GBP0.011.991(1)--TREASURY 4.5% GILT 07/03/2019 GBP0.011.452(-)--VODAFONE GROUP1.453(2)-TREASURY 4.75% GILT 07/03/20 GBP0.01 WI MAY1.134(-)--TREASURY 4.25% GILT 07/12/401.125(8)--BP1.086(3)-HSBC HLDGS1.017(4)-RIO TINTO0.978(5)-US TREASURY IL 2.375% 15/01/20270.909(6)--BARCLAYS BANK PLC 2.875% GTD NTS 23/12/11 GBP500000.8810(7)

Just out of interest, are they these funds?

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=M6F71&univ=U
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MSF42&univ=U
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=M6F72&univ=U

I ask because the performance and names match what you said, but each of them has a track record extending beyond the 1 year mark into a pretty poor set of returns over 3 and 5 year timescales compared to their respective benchmarks (e.g. the balanced portfolio returned 4.6% over a 5 years holding period compared to a sector average of 17.9%).

browniej

dunstonh wrote: »

1% of amount invested with a min of £500 and max of £1500 (larger portfolios will see the £1500 reduced, sometimes to zero). 0.5% p.a. charged for servicing (funds paying trail commission rebated). annual bed&ISA and rebalancing, adjustments etc done at no charge.

So you are taking the 0.5% that I thought was the norm as opposed to 1%?

Many thanks for giving your charging structure - really helpful.

There are ten risk based sector allocated portfolios where the sector allocations are defined but the funds used within the sectors will vary depending on the discussions and objectives with the clients in question. So, whilst the allocations are set for each profile (but updated periodically), the funds may not be. So, there isnt a one-size-fits-all figure I can give you.

So each portfolio, whilst the same risk, is tweaked according to the client? How would the decision be made as to what funds to use?

However, I did a review last week for one that started in 2005 and that has returned 59.74% compared to 42.26% for Jupiter Merlin Income Portfolio (which is the comparable risk MM fund).

Would that be most comparable to the Cautious portfolio feesarefare mentioned?

browniej

Aegis wrote: »

Just out of interest, are they these funds?

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=M6F71&univ=U
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MSF42&univ=U
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=M6F72&univ=U

I ask because the performance and names match what you said, but each of them has a track record extending beyond the 1 year mark into a pretty poor set of returns over 3 and 5 year timescales compared to their respective benchmarks (e.g. the balanced portfolio returned 4.6% over a 5 years holding period compared to a sector average of 17.9%).

I would be interested in that answer too.

Not so good if these are indeed the funds in question.

browniej

feesarefare wrote: »

Hopefully this explains

http://www.mlconline.co.uk/index.html

Not really clear what this means.

As you can see the funds that have the one year performance figures are not the same as the the ones with the long term record.

Can you provide a link to the funds you are referring to then please?

When Architas took over, they put in place their people and processes and it appears to have worked up to now. Its a very good example of why past performance figures should not be viewed alone.

If Architas took over why would performance figures for another group be part of their report?

browniej

feesarefare wrote: »

What conversations and objectives would determine when one fund is used over another?

I was really just looking for a more simple answer than that - perhaps I wasn't clear in my question.

I simply meant would that mean that a client having an objective for growth would have different funds to a client requiring income, even though both clients would have the same risk profile? Or perhaps some other reason such as tax implications?

I don't know how many multi-manager portfolios you offer but I could imagine people wanting a Balanced portfolio may have very different needs.

Coeus

Hi all!


Just to let you know the investment has gone ahead and I've opened a new post - a diary of such - to pass on my knowledge and experienced gained over the next few years!


https://forums.moneysavingexpert.com/discussion/3069918


THANKS FOR ALL YOU INPUT


Coeus.

browniej

feesarefare wrote: »

As the centre of our planning is using lifetime cashflows we dont have people"wanting a balanced portfolio" . We work back to the rate of return required based on their plan and then choose the portfolio that would best meet that aim. Thats assuming of course any risk needs to be taken.

Thanks.

How many portfolios are there? I assume you feel that everybody would fit into one should one be required?