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Advisers favour multi-asset funds – Aegon

Advisers favour multi-asset funds – Aegon

Mark Dunne
Tuesday 25th July 2017

The number of advisers favouring multi-asset funds has doubled in the past year, Aegon UK has discovered.

A survey by the insurer, pension provider and asset manager found that 36% of advisers predominately use multi-asset strategies, up from 18% a year ago.

Driving such a steep rise in popularity is a desire to simplify administration as asset allocation and fund selection can be complex and expensive.

The cost of investment research and securing client approval for any change to a fund are just two issues for advisers.

The result of higher multi-asset allocation is a fall in the use of traditional model portfolios, which slipped to 36% from 41% in 12 months.

This figure suggests that more advisers are outsourcing investment administration and governance.

Multi-asset and model portfolios are the two most popular strategies among advisers, accounting for 72% of those surveyed.

Of the remaining 28% of advisers questioned, 12% prefer single-strategy funds and 9% favour stockpicking. This was just ahead of the 8% opting for discretionary fund managers.

Aegon investment director Nick Dixon said some advisers see multi-asset funds as a cost-effective way of addressing mainstream investment needs.

But, he added, model portfolios are expected to remain as the dominant way of building investment strategies.

“Model portfolios aren’t going anywhere soon,” he said. “Advisers are, and will continue to, find appetite amongst clients for their uniquely tailored portfolios.”

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