IFA Magazine’s recent webinar proved timely given all the uncertainty in global markets right now. Here we highlight just some of the key investment themes explored by leading fund managers from Schroders and M&G Investments which featured plenty of straight talking – and clear answers!
With so much going on for advisers just now, early June was the perfect time to get the investment views and insights of leading fund managers in IFA Magazine’s latest webinar.
But, if you missed it, the good news is that you can now download the recording and listen to this very interesting, honest and informative conversation at your leisure. You can access the webinar recording here.
Firstly, big thanks go to our excellent – and hugely knowledgeable – panellists from Schroders and M&G Investments. They are Philip Chandler, CFA, Fund Manager & Head of UK Multi-Asset, Schroders and Maria Municchi, Fund Manager, M&G Investments. Maria and Philip’s conversation was ably chaired by JB Beckett who showed us yet again why he’s become so well known for his straight talking.
Typically, advisers tend to be broadly split between those who favour managed portfolio services (MPS) and those who prefer to use multi-asset funds. Whichever approach you lean most towards, this conversation has plenty for you to consider as it explored the numerous threats and opportunities facing investors in H2 2024.
Spoiler alert – probably no surprise to you – is that there really is a lot going on out there that advisers need to know about. Whether it’s inflation, elections, global equity markets and fixed income valuations, AI, Mag7 etc. this conversation explores them all in some detail and tells you what you need to know. You’ll even hear from our panel on what’s proving the biggest headache for them just now!
Due diligence and fund selection
When it comes to the range of MPS and multi-asset fund options available to advisers, the panel were very clear in explaining how they differ from each other and from more bespoke options, how to choose between them and some of the key considerations that should be on advisers’ radar when doing due diligence and making investment, fund manager and fund/portfolio decisions. Do you blend funds together? What about passive approaches? How important is tactical asset allocation? What about growth/value differences? All of these aspects have become even more significant in the new Consumer Duty era and are succinctly dealt with by the panel. At the root of it, is clear that suitability for your clients’ needs is key. However, getting sufficient detail to ensure that happens isn’t always easy.
As Schroders’ Philip Chandler comments: “I thought this was an excellent discussion. Inflation poses many challenges for investors, particularly as many have not lived through a significant period of inflation. I hope that through this discussion we were able to remind advisers exactly how and why multi-asset funds offer flexibility and the ability to adapt to changing markets, making them a more suitable choice for many investors. Multi-asset funds, unlike MPS, can use a range of instruments, including ETFs but also futures, to adjust their portfolios quickly and cheaply. For us though, adopting a dynamic asset allocation strategy is crucial for smoothing the path of returns and adapting to changing market conditions.”
Also giving us his post-webinar feedback and putting it in his own rather succinct way, our chair, JB Beckett, said: “Unlike all the election campaigning we’ve endured recently, this multi-asset webinar was an opportunity for some straight talking and clear answers! In the past, the case for multi asset was relatively simple, agreed and compelling. But in a New Fund Order, multi-asset funds have faced both threats and opportunities from markets and industry evolution. Certainly, the suitability case is not as simple as it once was but remains compelling for a number of reasons which we discussed in some detail.
“Overall, my takeaway was that multi-asset funds continue to face challenges in terms of cost, regulation, risk aversion, technology, latency and of course market volatility and evolution. Yet, as allocators, we are weaned on the core rules of diversification and this indeed held true during our insightful session with Philip and Maria. The role of dynamic active allocation, in fast-paced markets, seems more crucial than ever.”
Also commenting after the webinar, M&G Investments’ Maria Municchi said: “It was good that Philip, JB and I were able to cover so much important ground during this discussion. With many stockmarkets hitting all-time highs, concerns about the ‘sticky’ nature of inflation, not to mention the plethora of other investment options such as MPS available to advisers, this was a timely debate. I believe that not only did we highlight the importance of an active management approach but also the value of selecting a multi-asset manager with the strength and depth required to deliver robust analysis and research behind the scenes, as well as the ability to deliver great service for advisers and their clients.”
If you’re considering your asset allocation decisions for H2, how to position your clients’ investments, this is a great conversation to listen to.
Is now the time for multi-asset funds? Access the conversation here and listen when the time suits you.
Or learn more about Schroders and M&G Investments here.
About Philip Chandler, CFA
Philip joined Schroders in 2003 and is a Fund Manager and Head of UK Multi-Asset. He is responsible for all UK clients with benchmark SAA or peer group-based objectives and is a Co-Manager for the Schroder Global Multi-Asset Portfolios. Philip is a Member of the Duration risk premia team of the Strategic Investment Group Multi-Asset (SIGMA) and the Global Asset Allocation Committee.
About JB Beckett – Chair
Across 30 years, JB Beckett has delved through the contentious and taboo of our industry, speaking around the world. In 2015 JB wrote “New Fund Order” and “NFO 2.0” in 2016 and co-wrote a number of books on digitalisation of asset management. Since 2020 JB has hosted the New Fund Order podcast – NewFundOrder.Buzzsprout.com. A multi-asset allocator for over 20 years, until 2018 JB was a fund gatekeeper at Lloyds and Scottish Widows. Today, JB is a member of Royal London’s Investment Advisory Committee and remains Emeritus of the Association of Professional Fund Investors and external specialist for the CISI.
About Maria Municchi
Maria is fund manager on several of M&G’s Multi Asset Sustainable Investment strategies. Maria has been part of M&G’s multi-asset fund management team since January 2017, having initially joined M&G in 2009 as an investment specialist to the multi-asset and convertibles teams.
