The core of the matter

core funds

Professional Adviser
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Picking the right funds for the core of a portfolio can be the difference between steady outperformance and a dud return - these are the building blocks on which the risk/return characteristics of a portfolio are generated. Cherry Reynard looks at how the core of a portfolio should be constructed and the best products on the market

Choosing which funds to use for the core of an investor's portfolio used to be an easy decision - for exposure to equities, bonds and perhaps a bit of commercial property, investors didn't have to look much further than with-profits funds. But now with-profits funds have been largely discredited, advisers have to be smarter about their core holdings. What are the best the market has on offer? The first decision is whether to opt for a collection of single funds or a multi-manager solution. If investors go for the latter, advisers need to decide the extent to which they want exposure to alt...

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