New whitepaper urges advisers to rethink “multi-asset” portfolios as concentration and volatility risks rise

Independent research highlights how broader diversification and private markets exposure can support better client outcomes and stronger advice propositions.

A new whitepaper produced by advice industry specialist Verve in collaboration with M&G is calling on UK independent financial advisers to re-examine what “multi-asset” really means in today’s investment environment – and what this means for portfolio construction, client behaviour and long-term outcomes.

Titled PruFund: Redefining what it means to be multi-asset, the paper explores how many commonly used multi-asset funds remain heavily concentrated in equities and bonds, leaving advisers and their clients exposed to heightened volatility, market concentration and inflation risk. These challenges were brought sharply into focus during the 2022 market correction, when traditional diversification assumptions failed.

The whitepaper is being officially launched through a joint Verve and M&G webinar for advisers on Wednesday 28th January 2026, providing firms with practical insight into how these themes can be applied within centralised investment propositions and client portfolios.

As platform availability for the PruFund range widens, the paper is designed to help advisers and advice firms assess whether their existing multi-asset approach remains fit for purpose. And, whether alternative structures could improve portfolio resilience and the client investment experience.

Drawing on analysis of asset allocation, correlation, volatility and behavioural finance, the paper highlights several implications for advisers, including:

• Why not all multi-asset funds deliver meaningful diversification in practice
• How passive, market-cap-weighted strategies can increase exposure to US equities and large-cap technology stocks
• The potential role of private markets in improving risk-adjusted returns and reducing drawdowns
• How lower volatility and fewer negative periods can support client composure, reduce emotionally driven decisions and improve long-term outcomes

For advice firms, the research aims to support more robust investment governance and due diligence, helping advisers evidence why portfolio choices are appropriate in a more uncertain investment landscape. 

The paper also addresses the growing importance of managing the journey clients experience, not just end returns, particularly for those with lower tolerance for volatility.

Grant Callaghan, Financial Planning Specialist at Verve, said:

“Advisers are under increasing pressure to demonstrate that their investment propositions are genuinely diversified and resilient. This paper is designed to help firms challenge assumptions, strengthen their research process and ultimately deliver a better experience for clients, especially during periods of market stress.”

Jo Campbell, Chief Operations Officer at Verve, added:

“What worked during a long period of falling interest rates may not work in a future defined by inflation risk, concentration and geopolitical uncertainty. This research gives advisers a framework for reassessing portfolio construction in a way that is forward-looking and client-focused. Which is of course, of eternal importance in a post Consumer Duty world”

The whitepaper concludes with five practical prompts advisers can use when reviewing client portfolios, including questions around concentration risk, private market exposure, volatility and behavioural responses during market downturns.

PruFund: Redefining what it means to be multi-asset will be discussed in detail during the Verve and M&G adviser webinar on 28^th January 2026, and made available to attendees directly after. The paper will be launched into general distribution on Monday, 2^nd February.