AIPM seeks to tackle multi-asset flaws with launch of unique dual-fund solution
Asset Intelligence Portfolio Management (AIPM), the Midlands-based discretionary fund manager, today announces the launch of a unique, research-led dual-fund investment solution designed to tackle the failings of the multi-asset sector.
A recent white paper published by sister company Asset Intelligence Research revealed that more than £22bn is languishing in multi-asset funds which have underperformed their peers over the last decade, with many capturing more downside than upside due to asset mislabelling issues which expose investors to more risk than they realise.
The AIPM Gemini investment proposition, developed alongside T. Rowe Price, is designed to address these and other multi-asset failings* by offering advisers genuine diversification and the power to precisely tailor the construction of portfolios to align with each client’s risk appetite and personal requirements.
Rather than consisting of a single vehicle or range, each Gemini portfolio is created by blending two high-quality funds managed by AIPM – the VT Asset Intelligence Growth Fund and the VT Asset Intelligence Defensive Fund. VT Asset Intelligence Defensive Fund is designed to offer a degree of capital protection during periods of market uncertainty by focusing on lower-risk assets. VT Asset Intelligence Growth Fund seeks to deliver strong capital growth over the long-term by taking full advantage of global stock market opportunities.
Each of these funds contains a host of different strategies, offering exposure to a number of sectors and regions. The independent nature of the two vehicles allows a financial adviser to align the portfolio exactly with the specific needs and risk profile of every investor.
Gemini has been created alongside T. Rowe Price, the US$1.4trn global asset manager, which brings a wealth of knowledge and expertise to the underlying holdings within the VT Asset Intelligence funds.
Stefan Fura (Co-Founder at AIPM): “This proposition offers a truly bespoke way for advisers to tailor their client’s portfolio. Instead of advisers following the norm and relying on one multi-asset fund, they can now seize control and mould a proposition which truly meets their clients’ needs – adapting to their risk appetite as required.
“Gemini actually delivers what many multi-asset funds fail to do; it maximises growth whilst keeping within a client’s risk profile. By using two funds, one focused on growth and the other acting more defensively, advisers can customise their client’s framework to reflect their risk profile and achieve their goals. This robust active management approach provides a disciplined, risk-aware strategy that benefits the funds that make up our new proposition.”
Kel Nwanuforo (Investment Consultant at Asset Intelligence): “The problem with a lot of multi-asset funds is that when you look under the bonnet many of the underlying assets can all act similarly during periods of market stress. For example, our research has shown that global high yield bonds often correlate more closely to equities than to government bonds, yet many multi-asset funds class these as ‘defensive’ assets there to balance the volatility of equity holdings. Additionally, many UK multi-asset funds have a pronounced bias towards homegrown firms which limits the effectiveness of their diversification.
“Our investment managers have considered a wealth of data on how these asset classes truly behave, and this has given us the tools to lay the foundations for the creation of genuinely diversified portfolios. Gemini is a great way for advisers to access these exciting new funds and to ensure that their client’s money is invested sincerely in accordance with their risk profile.”
*The launch comes in direct response to the findings of a recent white paper published by Asset Intelligence Research which showed that many multi-asset offerings are failing to perform against their benchmark. It revealed how funds fail to deliver genuine diversification, invariably by relying on assets that behave similarly in times of market growth and drawdown and by being heavily weighted and biased towards the UK. The paper also identified concerns over a lack of true active investment management within some multi-asset funds. The full white paper, “Time for a Great Multi-Asset Reset” is available to view here.