Fraser Lundie and Mitch Reznick are co-heads of credit for Hermes Investment Management
Expert view
Jason Hollands, managing director, Bestinvest, says: “Over the long term, asset allocation decisions are a key driver behind differences in the returns between investment portfolios, more so than stock selection. Achieving a diversified asset allocation is also an important way of managing risk. This is not always the best use of time for a financial planner who may not be an investment specialist. Multi-asset funds which allocate across equities, bonds, currencies, alternatives and cash in line with a goal and risk profile, can therefore be a very elegant solution for the client and their adviser, especially where the client’s assets are below the typical threshold required for a discretionary account.”
