Multi-Asset Funds - Differences?

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  • dunstonh
    dunstonh Posts: 116,384 Forumite
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    edited 10 August 2018 at 3:36PM
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    rathernot wrote: »
    Both very good points which is why this is so damned difficult :)

    in a way, not knowing does help because if you are looking at underlying passive funds, then there are only three things to consider.

    1 - asset allocation (home bias, property inclusion etc)
    2 - and style (rigid allocations or fluid - will aim to stay in a volatility range or float up and down the scale a bit).
    3 - charges

    Cautious investors should look to those that are risk targetted. If you are higher up the scale then its not really an issue and returns are the focus.

    L&GMI, Architas, HSBC, Std Life for example at the lower to medium end as they are all risk targetted.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • rathernot
    rathernot Posts: 339 Forumite
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    Thank you :)

    Would you say I'm missing anyone or any category of fund off my list if "LifeStrategy Like" was my intention?
  • dunstonh
    dunstonh Posts: 116,384 Forumite
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    rathernot wrote: »
    Thank you :)

    Would you say I'm missing anyone or any category of fund off my list if "LifeStrategy Like" was my intention?

    I think the main names are all mentioned on this thread.

    We changed our position on VLS almost two years ago from a buy to a hold. New money goes elsewhere. But that is just our position.

    The US stimulus has been given at the wrong point of the cycle. Throwing oil on a raging fire doesn't give a significant benefit vs the amount you pour on. Whereas pouring that on a weak fire can bring it to life. Stimulus is best given at a different point and there may not be the money to use when it is needed. Or it may not be enough (if you have poured on so much stimulus that you have nothing left to give then it will just die and you won't have anything to help rebuild and boost it).

    So, I suspect the next decade will be like the pre-credit crunch decade for the US. Again, its a guess but you rarely see the same sectors perform best two times in a row.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • rathernot
    rathernot Posts: 339 Forumite
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    Thanks and interesting take on VLS mostly because on here it seems to be almost worshipped :)

    Looking into the MyFolio range now.
  • A_T
    A_T Posts: 959 Forumite
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    rathernot wrote: »
    Thank you :)

    Would you say I'm missing anyone or any category of fund off my list if "LifeStrategy Like" was my intention?

    Baillie Gifford Managed is another. Rather than index funds it holds individual shares.
  • aroominyork
    aroominyork Posts: 2,827 Forumite
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    dunstonh wrote: »
    I think the main names are all mentioned on this thread.

    We changed our position on VLS almost two years ago from a buy to a hold. New money goes elsewhere. But that is just our position.

    The US stimulus has been given at the wrong point of the cycle. Throwing oil on a raging fire doesn't give a significant benefit vs the amount you pour on. Whereas pouring that on a weak fire can bring it to life. Stimulus is best given at a different point and there may not be the money to use when it is needed. Or it may not be enough (if you have poured on so much stimulus that you have nothing left to give then it will just die and you won't have anything to help rebuild and boost it).

    So, I suspect the next decade will be like the pre-credit crunch decade for the US. Again, its a guess but you rarely see the same sectors perform best two times in a row.
    So do you think that when people say global markets are increasingly integrated and moving in similar directions, that is just because stimulus has been sending all Western markets up at the same time while emerging markets are, um, emerging, and that the apparent integration is just a blip?
  • dunstonh
    dunstonh Posts: 116,384 Forumite
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    aroominyork wrote: »
    So do you think that when people say global markets are increasingly integrated and moving in similar directions, that is just because stimulus has been sending all Western markets up at the same time while emerging markets are, um, emerging, and that the apparent integration is just a blip?

    In a globalised economy, all will follow. It will just be degrees of difference.

    Over the last 5 years, the sector average:
    66.61 Global sector
    69.91 Japan
    47.72 UK
    94.06 North America]

    The split is much the same over 10 years except the US pulling away more.

    In every cycle, the one pulling away and the laggard is usually different to the one before. Often swapping places.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • masonic
    masonic Posts: 23,278 Forumite
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    I think someone needs to launch a multi-multi-asset fund that invests in the available multi-asset funds according to their weighting in discussion in threads like this.
  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    dunstonh wrote: »
    The bottom line is that if you go with any of these, you will get broadly similar performance with all of them when matching risk profile (or as close as you can get). One will do better in one period as it has more in an area that is doing better. The next period it will be someone elses turn and so on.
    That seems to me a good reason for have at least a couple of multi asset funds for a large portfolio (if not using single sector funds) rather than putting it all in one multi asset fund, as some other people on the forum have previously recommended.
  • dunstonh
    dunstonh Posts: 116,384 Forumite
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    Audaxer wrote: »
    That seems to me a good reason for have at least a couple of multi asset funds for a large portfolio (if not using single sector funds) rather than putting it all in one multi asset fund, as some other people on the forum have previously recommended.

    If you are not going single sector then upto £85k (the new FSCS limit coming) in each would be fine. Variations of a theme. Under FSCS limits, no knowing which will be best...... why not
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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