If you are an adviser or paraplanner who recommends multi asset funds – whether this is in the form of an outsourced, or in-house centralised investment service, or whether you recommend multi asset funds generally – you need to know about their embedded biases, Paul Ilott writes…
Embedded biases are effectively the DNA of a multi-asset fund, and investment style is a key DNA building block. Style can make a tremendous difference to return patterns because individual styles perform differently throughout the economic cycle and under a range of market scenarios. Identifying style(s) can help us understand the likely market conditions that might benefit or hinder a portfolio's performance journey relative to peers. We might be more tolerant of periods of tepid performance when the prevailing market backdrop isn't conducive to the portfolio manager's style. Conver...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
