Views on an active multi asset fund as part of income portfolio

Audaxer · 9 July 2017 at 12:56PM

Hi there, I'm interested in the following Artemis Monthly Distribution fund as being part of an income portfolio:
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=10FEB&univ=O
It has a 60/40 equity allocation and seems quite diverse and gets good ratings on Morningstar and Trustnet so seems to tick all the boxes in my view.

Just wondering what you more experienced investors think of this fund and whether it is a good idea to include a multi asset fund like this in an income portfolio comprising mainly of single sector funds and ITs?

bowlhead99 · 9 July 2017 at 1:11PM

Perhaps the question to be asking yourself is the other way around.

Do a bunch of single sector funds and ITs that you picked yourself have a place in an income portfolio primarily composed of one or two multi asset fund(s) which have allocations put in place by a team of investment professionals with access to lots of paid-for research and analysis?

Audaxer · 9 July 2017 at 1:49PM

bowlhead99 wrote: »

Perhaps the question to be asking yourself is the other way around.

Do a bunch of single sector funds and ITs that you picked yourself have a place in an income portfolio primarily composed of one or two multi asset fund(s) which have allocations put in place by a team of investment professionals with access to lots of paid-for research and analysis?

Fair point - I've picked the single sector funds and ITs and now considering this multi asset fund, but not actually invested yet as I'm currently awaiting funds to be transferred. As there is so much choice, I am doubting my ability to have picked as good a mix of actively managed single sector funds as a professional selected and balanced multi asset fund.

However many DIY investors on here have invested in a bunch of single sector funds, so why would they not be better going with a professional multi asset fund as well?

eskbanker · 9 July 2017 at 4:22PM

Audaxer wrote: »

However many DIY investors on here have invested in a bunch of single sector funds, so why would they not be better going with a professional multi asset fund as well?

We're all different, with varying ages, incomes, commitments, objectives, knowledge, attitudes to risk, etc, etc, so don't be overly influenced by what others say they've done and what they claim to have achieved by doing so!

Audaxer · 9 July 2017 at 5:58PM

eskbanker wrote: »

We're all different, with varying ages, incomes, commitments, objectives, knowledge, attitudes to risk, etc, etc, so don't be overly influenced by what others say they've done and what they claim to have achieved by doing so!

Thanks. I have researched and selected single sector funds and ITs to give me what I think is a fairly diverse asset allocation. As it is for an income portfolio, I have included a few UK equity income ITs and one UK Equity Income fund, but I have ensured there is a spread of Large, Mid and Small Caps. I have chosen only one Global Income IT, but maybe I should add another. I have also included 3 bond funds - a Strategic Bond, Corporate Bond and Sterling Bond Fund. I have put them into Morningstar X-ray to check the Asset Allocation is around 60/40 as that is what I am aiming at, and that there is not too much overlap.

Does that sound a reasonable way of selecting funds and ITs as I'm beginning to doubt myself as I trust bowlhead's experience and views, and his post seemed to indicate I'd be better sticking with professionally managed multi asset funds?

Views on an active multi asset fund as part of income portfolio

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