The best way advisers can go about using multi-asset to grow their business is by considering portfolio construction from a client perspective, says Legal & General Investment Management (LGIM) head of intermediary sales Paul Measures in this video interview.
Speaking with Professional Adviser editor Julian Marr in the above video, Measures (pictured) suggests the growth in the popularity of multi-asset investing - and, within that, multi-index solutions - can principally be attributed to a focus by advisers and their clients on market effeciencies and cost.
The sector has also received a boost from pension freedom and the subsequent focus on suitability risk. "The hunt for income has always existed," says Measures. "Pension freedom gives retirees the opportunity to pursue a non-annuity investment strategy.
"What is fundamentally more important, we believe, is to think about investors on that savings curve as both 'to and through retirement' and, on that retirement 'glide path', to understand suitability risk. Advisers need to be able to match a solution to that ongoing suitability."
Measures refers to LGIM multi-asset fund manager Andrzej Pioch's argument, in another video in this series, Balancing yield and risk, that understanding sequence risk is another key factor in structuring multi-index solutions in the context of pension freedoms.
Sequence risk - also known colloquially as 'pound-cost ravaging - concerns the variations in potential outcomes from regular investments into, or withdrawals from, a portfolio.
Measures adds: "When we look at pension freedom, it is really telling the impact sequence risk can have on an investor and so advisers need to consider whether a client takes a fixed or a natural income - or, actually, is there enough evidence to suggest blending the two together?"
To watch the first interview in this series, 'Weathering the investment storm' through multi-asset, please click here.
To watch the second interview in this series, The ‘four pillars' of multi-asset investing, please click here.
To watch the third interview in this series, ‘Don't index in multi-asset just for the sake of it', please click here.
To watch the fourth interview in this series, Balancing yield and risk through multi-asset, please click here.
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