As readers will no doubt testify, multi-asset funds have long held their place in the investment toolbox for financial advisers and their clients. But are they still delivering what advisers and clients need in today’s shifting regulatory landscape and a volatile market environment?
A key part of gaining a full perspective of multi-asset fund insights for our 2025 Multi-Asset Funds Insights publication released last month, was to find out the views of our audience of financial advisers and wealth managers. So we asked you what you think! We’re incredibly grateful to all those who took time to share their views with us via our online survey earlier this year.
It’s helped us discover how you’re using multi-asset fund solutions in your advice business today, or not. And if you are in the somewhat large majority of advisers to do use these funds, we wanted to know what’s actually working for you. What do you really want from these comprehensive investment solutions? Which managers do you favour? And which types of fund do you prefer? We had lots of questions and you gave us your verdict.
With data drawn from IFA Magazine’s 2025 Multi-Asset reader survey and poll, in this article we unpack what you’ve told us about the evolving role of multi-asset funds and what matters most to those who are using them every day. Spoiler: it’s certainly not just about performance!
As you’ve probably guessed from the intro, this analysis of our reader survey results was featured in our Multi-asset Fund Insights 2025, looking at the latest thinking and analysis into what’s going on within this key market segment. Readers can check out the full details of the publication here.
Why advisers use multi-asset funds (and why some don’t)
The overwhelming majority of advisers we surveyed, 89%, are recommending multi-asset funds to clients. And among those who do, more than half use them “very often” or “often”. That’s a clear signal of trust and utility. But what’s driving that continued popularity?
Portfolio diversification tops the list, with 87.7% of respondents choosing it as a key reason – as Chart 1 clearly shows. That’s backed up in the poll we carried out on social media, where 53% named diversification as their number one factor. Risk management also ranks highly, cited by around 70% of advisers, followed closely by simplicity for clients and access to professional asset allocation.
Chart 1 shows reasons respondents choose multi-asset funds
Interestingly, performance track record came quite a way down the pecking order – with just 43% of respondents telling us this was a major factor for them. The message that past performance is no guarantee of future results has clearly landed.
One adviser summed it up in their open response: “They offer the ability to apply the same solution across multiple custody platforms with professional oversight—makes my life easier and keeps things consistent.”
Still, not everyone is on board. A few outliers mentioned that they’re “genuinely happy not using them,” while others raised concern about their fit within centralised investment propositions (CIPs) or discretionary models.
What kinds of multi-asset funds are in favour?
Risk-rated funds are the clear favourite, recommended by more than 80% of advisers in our full survey and striking a chord with 75% of those in the poll. These strategies seem to tick all the boxes: regulatory alignment, client comprehension, and ease of portfolio construction.
Beyond that, things get more diverse. Income-focused, ESG-aligned, and volatility-managed strategies all made bold appearances, with income and ESG both receiving modest support in the poll (just 8% each). Some advisers added niche strategies like private markets multi-asset or fixed asset allocation approaches.
Interestingly, a significant number (almost 37%) still use discretionary fund manager (DFM) models, suggesting that hybrid solutions are still thriving too.
How much of each portfolio should be multi-asset?
Multi-asset isn’t just an add-on. For many advisers, it’s the backbone. As shown in Chart 2, a notable 38% of respondents said they allocate more than 80% of a typical client’s portfolio to multi-asset solutions. That’s a huge figure and reflects how embedded these strategies are in many advice firms’ propositions.
Only 12% said they allocate less than 20%, which again highlights how rare it is to see advisers dipping just a toe into multi-asset waters.
Chart 2 shows respondents’ allocation of AUM to multi-asset funds
How advisers assess performance
With growing scrutiny on due diligence and Consumer Duty obligations, how are advisers assessing the performance of the funds they recommend?
Unsurprisingly, performance vs benchmarks and peer groups lead the way (both used by over 60% of advisers). But there’s more to it than raw numbers. Risk-adjusted returns, consistency, and even third-party ratings all factored heavily.
Several advisers also mentioned fewer mainstream metrics, like beta, Sortino ratio, ARC Indexes, or manager tenure. One respondent added, “Costs are key too—particularly when you’re stacking adviser, platform, and fund charges.”
The message is clear: fund groups need to show value beyond short-term returns.
Which multi-asset providers are topping the adviser charts?
When it comes to multi-asset fund providers, a few familiar names dominate. Vanguard, BlackRock, and Royal London all rank highly for trust and usage. But our extended commentary tells a more nuanced story.
More niche or boutique names, like PortfolioMetrix, Ruffer, 7IM, Waverton, and True Potential, were also frequently mentioned in open responses. Advisers are increasingly exploring beyond the usual suspects, often in search of differentiated strategies or more responsive service models.
That said, one comment stood out for us: “Fund houses need to prove they can manage all asset classes competently. It’s not enough to just wrap it up nicely.”
What’s changed in the past two years?
For most advisers, the past two years haven’t shifted the multi-asset dial too far it seems. In our full survey, 63% of respondents said their view on multi-asset funds was unchanged, although 30% said that their opinion had become more favourable over that period. Only 4% said their views have become more negative. Reading that as a direction of travel, it seems that the momentum towards the use of multi-asset is set fair. This isn’t a trend which looks like disappearing any time soon. In our smaller poll, the trend was even stronger: 75% said “no change” and just 8% were more positive in terms of how their views had shifted towards the sector.
That’s not necessarily a bad thing. In a turbulent market and regulatory environment, steady sentiment might indicate reliability.
However, a minority are cooling off: 17% of respondents in the MAR poll said their views on multi-asset had become less favourable. When we dug into the reasons why, the same concerns cropped up again and again…
The challenges advisers still face
Despite the widespread use of multi-asset funds, advisers aren’t blind to the pain points. Fees amongst the most-cited challenges, along with underperformance and portfolio overlap, as shown in Chart 4.
Chart 4 shows respondents concerns or challenges in selecting multi-asset funds
Some advisers noted client confusion as a barrier: “Explaining what they actually do can be hard. Clients sometimes wonder why they’re paying me and the fund manager.” Others felt regulatory scrutiny has made things more complicated than they need to be, although overall, regulatory scrutiny does not appear to be a driver towards use of multi-asset, with just 6% of respondents falling into this category.
And of course, there’s the perennial challenge of avoiding duplication across different portfolios and wrappers. One adviser said bluntly: “It’s too easy to end up with hidden overlap if you’re not careful.”
What’s the future for multi-asset investing? However, a minority are cooling off: 17% of respondents in the MAR poll said their views on multi-asset had become less favourable. When we dug into the reasons why, the same concerns cropped up again and again…
The challenges advisers still face
Despite the widespread use of multi-asset funds, advisers aren’t blind to the pain points. Fees amongst the most-cited challenges, along with underperformance and portfolio overlap, as shown in Chart 4.
Chart 4 shows respondents concerns or challenges in selecting multi-asset funds
Some advisers noted client confusion as a barrier: “Explaining what they actually do can be hard. Clients sometimes wonder why they’re paying me and the fund manager.” Others felt regulatory scrutiny has made things more complicated than they need to be, although overall, regulatory scrutiny does not appear to be a driver towards use of multi-asset, with just 6% of respondents falling into this category.
And of course, there’s the perennial challenge of avoiding duplication across different portfolios and wrappers. One adviser said bluntly: “It’s too easy to end up with hidden overlap if you’re not careful.”
What’s the future for multi-asset investing?
Overall, from what our respondents have told us, the future for these funds is looking remarkably bright. It’s clear that multi-asset funds remain a cornerstone of many advisers’ investment propositions and in today’s uncertain world, their benefits tie in well with clients’ increasingly complex financial planning objectives. Whether they’re used for simplicity, risk control, or regulatory alignment, these funds continue to offer broad appeal and practical utility. But the expectations are higher than ever.
Performance still matters but so does diversification and the risk of overlap of underlying holdings elsewhere in the client’s portfolio. Charges remain are under the spotlight. And advisers want clear, comparable data that allows them to make defensible and robust investment decisions for their clients.
For providers, that means continuing to step up: flexibility, clearer reporting, smarter support, and a willingness to prove value in every conversation.
Of course, there are other more bespoke solutions available too, such as Model Portfolio Services, all competing for a slice of the multi-asset action.
For advisers and asset managers, the message is equally clear: when used well, multi-asset funds still deliver. But it’s no longer enough to set and forget. Now starts the age of intentional multi-asset investing.
We’d like to thank all the readers who took the time to feed back their views to us by completing this survey in April and May of this year. Your contributions are very much appreciated.
IFA Magazine Reader Survey carried out online April 2025
IFA Magazine social media poll carried out online May 2025
