Stuart Eliot

Senior Portfolio Manager

The enduring role of the humble diversified fund

The importance of diversifying your diversifiers  

We understand advisers are responsible for deciding how client assets are spread across markets. We know different advisers draw on different resources to determine how asset allocation decisions are taken, and how allocations are monitored and re-balanced.

It’s important for advisers to stress test the capabilities of those they rely on to help decide a client’s asset mix. Do they have the time, tools and experience required? Are their processes proven across the investment cycle?

We believe advisers should think about ‘diversifying their diversifiers’, meaning they should consider a combination of resources to ensure portfolios are properly structured and managed to meet client goals.

One enduring way to effectively – and efficiently – manage at least part of the asset allocation process is through the use of multi-sector funds.

 

Multi-sector, multi-purpose

Multi-sector funds remain a popular choice with as the nucleus of broader, more complex portfolios. Multi-sector managers employing active management between asset classes can serve as an ‘auto-tilt’ outside periodic reviews and guard against portfolio drift. Actively managed multi-sector funds can also be a good complement to passively managed allocations.

There is also ongoing demand for self-contained investment solutions for lower balance clients or clients with a lower level of sophistication. Multi-sector funds can achieve most (or even all) of the investment needs of these client types, where advisers can efficiently entrust the strategic and tactical allocation within and between asset classes to experienced investment teams with proven processes.

 

Solutions available

BTIM actively manages a suite of multi-sector portfolios. BTIM’s Diversified Strategies team assess the longer term outlook across all major markets and tactically adjust sector allocations in a disciplined and efficient way. Active investment management is then used within each investment sector and investors access capabilities including those managed by BTIM’s Crispin Murray, Vimal Gor and Ashley Pittard.

So in the one fund clients can obtain extensive diversification, active management at the fund and sector levels and value for money.

Talk to your Pendal Key Account Manager today for more information. 

 

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This article has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at November 17, 2017. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.

This article is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.

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