Opposites attract when it comes to blending multi-asset funds

We've come across many instances where advice firms seek to diversify product risk by blending an active multi asset fund with a passive multi asset fund. After all, many of the environments in which a passive approach might be expected to thrive are the direct opposites of those likely to suit the most skilful active managers. However, whilst this approach is well-meaning, it can be overly simplistic and therefore prove less successful when the underlying factors that drive portfolio returns turn out to be the same. For example, in some instances, whilst the funds chosen for blend...