FE adds first risk-targeted multi-asset funds to Approved List

FE has added 21 risk-targeted multi-asset funds to its Approved List to help advisers compare the risk and returns of the growing number of mandates in the space.

The funds have been selected from FE’s own Risk Targeted Multi-Asset (RTMA) universe. The funds’ FE Crown Rating, FE Alpha Manager Rating and the FE Group Award are taken into account. Each fund in the RTMA universe is mapped to a short, medium and long-term risk level, based on its FE Risk Score.

Rob Gleeson, head of research at FE, says: “Risk Targeted Multi-Asset funds have soared in popularity with advisers over the past few years and fund providers are responding with a range of multi-asset products, providing more choice than ever.

“However, picking the best fund for a specific risk target is not easy. These 21 funds have been chosen based on a stringent methodology with five specific risk profiles in mind to support advisers’ investment propositions. Advisers using Investment Planner, our recently launched step-by-step investment process, can easily map these recommended funds into their models.”

The recommended funds are managed by six asset management groups; Architas (six funds); Standard Life Investments (five funds); HSBC Global Asset Management (three funds); Rathbone (three funds); Legal & General (two funds); and Premier Asset Management (two funds).

Amandine Thierree, portfolio manager at FE, says: “Standard Life Investments’ MyFolio funds received the highest group score and are best suited at the low to medium risk profiles. Excellent tactical asset allocation led us to score Architas’ passive range highly and they also have the largest coverage of the risk spectrum with good options for risk band one through to five.

He adds: “The three HSBC funds are also from their passive range and all five are FE Crown rated. L&G’s and Premier’s funds are all well suited to the lower risk levels – L&G have great downside risk management due largely to their accurate house views and scenario analysis and Premier’s active fund range has very strong manager selection skills. Rathbones’ approach to risk is a bit different with asset classes clustered by similar characteristics and their level of correlation toward equities. The process is tried and tested and is very good at both the low and high-risk levels.”