This week Professional Adviser is proudly publishing the shortlists for its 2018 adviser and provider awards, the winners of which will be announced at a black-tie ceremony next February.
We are delighted that, once again, so many different firms have put themselves forward for consideration for these awards, which are now in their 13th year and seek to reward excellence - both within the financial advice community and also among the broader financial services sector.
The identities of all the winners will be revealed at a black-tie ceremony at The Brewery in London on the evening of Thursday 8 February 2018. Make sure you don't miss out and book your table here
Over the last week, we have been revealing the people and firms vying for our two dozen or so awards - and, having covered off our eight Adviser Firm of the Year shortlists last Thursday and Friday and a further 12 categories on Monday and Tuesday, we finish up with the funds in the running for our five multi-asset accolades:
Professional Adviser is hugely grateful to Paul Ilott, director of multi-asset research at Scopic Research, part of The Embark Group, for his help in arriving at the following names. The methodology involved is outlined in more detail below.
Best Multi-Asset Fund: Rising Income
|Architas Diversified Real Assets|
|Fidelity Multi-Asset Income & Growth|
|MI Hawksmoor Distribution|
|Premier Multi-Asset Distribution|
Best Multi-Asset Fund: High Income
|Artemis Monthly Distribution|
|Close Diversified Income|
|Fidelity Multi-Asset Income|
|Premier Multi-Asset Monthly Income|
Best Multi-Asset Fund: Long-Term Growth
|CF Miton Worldwide Opportunities|
|F&C MM Navigator Moderate|
|MI Hawksmoor Vanbrugh|
|OM Cirillium Conservative Portfolio|
|Premier Multi-Asset Conservative|
|T Bailey Dynamic|
Best Multi-Asset Fund: Positive Return
|Premier Defensive Growth|
|Premier Multi-Asset Absolute Return|
|SVS Church House Tenax Absolute Return Strategies|
Best Multi-Asset Fund Range: Volatility Managed
|Architas Multi Asset Active Funds|
|Premier Liberation Funds|
|Standard Life MyFolio Managed Funds|
|SV Cornelian (Risk Managed) Funds|
Multi-asset awards methodology
The five categories above are based upon investment outcomes and so each one may contain funds from a number of different Investment Association (IA) sectors. Delivering the investment outcome and meeting the fund's own objectives in the most risk efficient manner is the key.
* Rising Income: These funds must exhibit strong commitment to delivering a progressively rising stream of income - generally starting at around 2.5% per annum net in today's market. Distributions are typically delivered on a quarterly or more frequent basis. Having 'income' in the fund title or income simply being a by-product of the investment process is not sufficient.
* High Income: These funds must exhibit strong commitment to delivering a sustainably high level of income - generally around 2.5% per annum net or higher in today's market. Distributions are typically delivered on a quarterly or more frequent basis. Having 'income' in the fund title or income simply being a by-product of the investment process is not sufficient.
* Long-Term Growth: These funds are typically managed to long-term investment horizons and are focused on capital growth rather than on income generation. Achieving good risk-adjusted returns in both rising and falling equity market conditions, regardless of the fund's sector, is key to being included in this category.
* Positive Return: These funds seek to generate positive returns and typically aim to match or beat returns from a benchmark that also has a positive return profile. The timeframe to achieve the benchmark 'target return' is generally longer than for an 'Absolute Return' type fund - typically three years.
* Volatility Managed: These are suites of funds managed by a single fund group where the expectation is that returns will be delivered within specified volatility parameters or up to a specified volatility ceiling. Typically, each fund in the suite is distinguished by having a different tolerance to volatility. These are suites of funds rather than a single fund and simply being 'risk-rated' is not sufficient.
To be included, funds must invest in multiple asset classes - defined as ‘Mixed Asset' by FE. Equity, Bond, Hedge, Money Market and Structured Product classes are therefore excluded from all award categories. Minimum fund assets should be greater than £25m.
Performance histories must span at least four risk-on market conditions and four risk-off market conditions as defined by a 10% increase or 10% fall (both approximately) in broader equity markets up until 30 September 2017.
An exception was, however, made for the Rising Income category where fewer funds would otherwise have passed the quantitative scoring filter. Here, funds that span three risk-on market conditions and three risk-off market conditions were also included.
Peer group analysis is conducted within each individual risk-on, risk-off market period using: cumulative return, maximum gain, maximum drawdown, downside volatility and risk-reward ratio metrics. An average percentile risk score across all of the periods is then calibrated.
Similar analysis is then carried out from the date of each inflection point in equity markets up until 30 September 2017 to arrive at an average long-term percentile risk score. A 50% weight is then given to the two percentile risk scores to generate an ‘overall percentile risk score'.
Funds must have average ‘short term' risk percentile scores of 30th percentile or less across the individual risk-on and risk-off periods as well as having an average long-term risk score of 30th percentile or less using the equity market inflection point analysis. Funds that exhibit the most attractive overall percentile risk scores are then highlighted.
When producing the analysis for the Long-Term Growth category, all mixed asset class sectors were covered, but income funds and volatility managed funds were excluded.
When producing the analysis for the Rising Income and High Income categories, funds exhibiting an average historic yield of less than 2.5% over the past four years were excluded.
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