IFAs warned to avoid 'lazy' multi-manager option

Parmenion investments head Simon Brett says many client risk profiles may not be suited to “too general” multi-manager offerings, as the underling asset allocation in these funds can vary significantly, despite sector classifications. Brett examined the multi-manager funds within the IMA Cautious Managed sector, which showed the UK equity content varied from 60% down to 35%, as well as variable UK fixed interest levels. “The risk profiles of the above funds are not the same because the asset allocation is different,” Brett says. “Cautious means a much different thing to some people comp...