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The Multi Asset Fund is suitable for those investors seeking equity like returns in a less volatile manner through a Fund that has hard wired broad diversification limits. The Fund does this by setting broad parameters around equities, fixed income and alternatives. The Multi Asset Team is responsible for the overall portfolio construction, being guided by the Asset Allocation Strategy Group. A group consisting of nine senior investors in the firm including representatives from the Multi Asset Team.
Reasons to invest
The strategy has maximum and minimum asset class holdings, that have been developed via scenario testing to achieve equity like returns over the longer term.
The strategy is actively managed within its strategic asset allocation parameters and is actively managed at the security level.
Diversified sources of return:
The strategy looks to take advantage of three sources of return; asset allocation, investment themes a stock selection
The Asset Allocation Strategy Group uses the output from Columbia Threadneedle Investment’s three main research groups to formulate its macroeconomic and thematic views, and defines the investment environment used to build multi asset portfolios. This is combined with a valuation framework across all asset classes, and is used by the group to determine its preferred asset allocation.
Cash+4% (Defined as Bank of England Base Rate).
Lower volatility than an equity only portfolio, approximately two-thirds the volatility of equities
Fixed income 20-40%
Asset Allocation Limits
Primarily through Internal Funds
Fixed income 20-40%
Sources of Return
Asset Allocation and Stock Selection
Lead Portfolio Manager
UK Life company
Long only, unlevered
Ongoing Charges Figure (OCF)
Asset Allocation Update - May 2020
Interim / Annual report
Investment in Funds: The Investment Policy allows the fund to invest principally in units of other collective investment schemes. Investors should consider the investment policy and asset composition in the underlying funds when assessing their portfolio exposure.
No Capital Guarantee: Positive returns are not guaranteed and no form of capital protection applies.
Issuer Risk: The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.
Liquidity Risk: The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.
Interest Rate Risk: Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa.
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