Alternatives to Waverton Real Assets

PhoneBook

I'm looking at Waverton Real Assets as a diversifier to my SIPP which is essentially a regular mainstream equity/fixed income 60/40 mix. In one fund it offers: infrastructure, commodities, property and some debt financing. Its recent form has been OK but it's not offered on Hargreaves Lansdown where I hold my SIPP. I don't really want to set up multiple funds/ITs/ETF to cover each of those various sectors. Many multi-asset vehicles are mainly equity/bond mixes with usually only token coverage of those alternative sectors. Can anyone suggest a suitable single alternative?

masonic

This is the first fund of this nature I have come across, and it's quite niche. I guess you'd want to hold most of what this fund invests in, which limits the target market somewhat.

Have you considered asking HL if they'll add it? They sometimes do, and are more likely to do so the more people enquire.

PhoneBook

masonic said:

This is the first fund of this nature I have come across, and it's quite niche. I guess you'd want to hold most of what this fund invests in, which limits the target market somewhat.

Have you considered asking HL if they'll add it? They sometimes do, and are more likely to do so the more people enquire.

Yes, it's a good mix of diversifiers alongside regular multi-asset funds. I've previously asked HL if they'd add it but couldn't offer them a large enough initial investment to make it worth their while, apparently not too many other previous requests. I've asked again, let's see the response.

masonic

I would have preferred a closed-ended vehicle, and that also would have made it more viable to hold at places like HL within the cap on platform fees. I'm not sure how they manage liquidity if there are significant outflows. Other than that it does look quite interesting.

Eyeful

1. Had a look at their website just now. 
They want your contact details and make finding charges/fees you will be paying not so easy to find.
Those two things by themselves, mean I would not bother going any further.

2. Over the long term, costs & fees you have to pay, as well as the asset mix,
will determine the amount of money you will end up with when you retire.

3. Do you really need a diversifier in your SIPP or would a simple low cost Multi-Asset Fund with a 60/40 split satisfy your needs?

masonic

The fund fee is 0.53% if you can get the P unit class, but that's rather academic when it's not available on your investment platform.

It appears to be available at Fidelity.

Albermarle

masonic said:

The fund fee is 0.53% if you can get the P unit class, but that's rather academic when it's not available on your investment platform.

It appears to be available at Fidelity.

Also available on AJ Bell platform.

PhoneBook

Eyeful said:

1. Had a look at their website just now. 
They want your contact details and make finding charges/fees you will be paying not so easy to find.
Those two things by themselves, mean I would not bother going any further.

2. Over the long term, costs & fees you have to pay, as well as the asset mix,
will determine the amount of money you will end up with when you retire.

3. Do you really need a diversifier in your SIPP or would a simple low cost Multi-Asset Fund with a 60/40 split satisfy your needs?

1. I'm at the start of searching for suitable funds.
2.  If it's not available on my HL platform it doesn't matter what the fees might be, if HL will offer it I'd see what the fees would be.
3. I hold a few multi-asset funds already, mainly in the 20-60% equities sector and in the main they are predominantly equites and bonds, whether active or tracker. The proportion given over to "alternatives" - property, commodities, infrastructure, private equity and so on - is usually less than 5%, so not offering much in the way of diversification from the traditional equity/bond mix.

Still looking for alternatives.

lr1277

i note there are 2 flavours of this available at Charles Stanley direct. Looking at the P Cap fund, it seems to have gone up 27% since launch in March 2021, meaing it has grown approximately 6% a year. It doesn't seem to be a wealth preservation fund. Is that rate of growth in your target range?

masonic

lr1277 said:

i note there are 2 flavours of this available at Charles Stanley direct. Looking at the P Cap fund, it seems to have gone up 27% since launch in March 2021, meaing it has grown approximately 6% a year. It doesn't seem to be a wealth preservation fund. Is that rate of growth in your target range?

I wouldn't class it as a wealth preservation fund. These tend to use a blend of equities/property/bonds, sometimes with a slice of gold, but rarely much exposure to the type of assets in the fund under discussion. But it has certainly underperformed a pure commodity futures play (~70%) in this recent episode of spiky inflation and its performance has coincidentally been in line with traditional wealth preservation options (e.g. PNL @ ~25%). But commodities are weird beasts and might not deliver next time around.