Where now for the multi-asset sectors?

It is worth starting with a definition of the problem. The criticism of the sector classifications is that they do not set clear limits on risk. For example, the Cautious Managed sector can have a maximum of 60% equity exposure and minimum of 30% fixed interest and cash. This definition allows for a broad spectrum of risk – a fund might have 5% or 60% in equities, it might have 35% or 95% in fixed interest and cash. Some of this is necessary - many managers try to add value through asset allocation and therefore need some flexibility – but critics argue the definitions are so broad as to...