Fraser Donaldson: Is multi-asset too expensive?

Paying for knowledge is fair

clock • 4 min read

Following the debate over whether multi-asset funds and portfolios are good value compared with other solutions designed to achieve the same outcomes, writes Fraser Donaldson, it is reasonable to put some historical perspective on these arguments. Rome was not built in a day and all that …

It seems to me there are three separate issues in this cost debate: value for money, who is charging for what and the old active vs passive argument. Multi-asset used to be called fund of funds. But they appear to have gone through a subtle rebranding over the last ten years. Initially there was scepticism over who was benefiting the most. Funds had a bid/offer spread starting at 5% but potentially rising to double figures. The charges were wrapped up in the bid/offer spread, with a hurdle to overcome before reaching profitability. In addition, the annual management charge was only pa...

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