Vodcast: Multi-Asset Investing and the Impact of Consumer Duty

Ross Easton, Head of Platform Propositions, and Barry MacLennan, CEO Embark Investments, discuss the drivers behind the growth in multi-asset investing and reveal how advisers can compare the wide range of choices by getting under the ‘process’ hood of multi-asset strategies.

Key Takeaways

The Retail Distribution Review, and more recently, the FCA’s Consumer Duty, have significantly strengthened the appeal of multi-asset investing within centralised investment propositions, whether via multi-asset funds, off-the-shelf model portfolios or bespoke model portfolios.

When comparing multi-asset strategies there is a great deal of data on price and performance but less so on process, yet it is critical to understanding whether performance can be sustained. Advisers can access independent opinion from specialists, like The Adviser Centre, which offers an independent advisory service.

We are at an interesting time for platforms with Consumer Duty since we are now seeing the first round of value assessments from asset managers.

In some cases, we are seeing outcomes are falling short of what clients expect and platforms may need to take action to avoid foreseeable harms.

Generally, value assessments for multi-asset solutions show these solutions tend to track well against their benchmarks and provide the intended outcomes.