The fundamental design fault with most multi-asset funds

Over the last few weeks, there has been a lively debate in the financial advice trade press about the rival merits of managed (or model) portfolio service (MPS) investment solutions and multi-asset funds (MAFs).  The trend in recent years has been away from multi-asset funds, towards MPS. A report published in June by the consultancy NextWealth showed that  £123bn was held in discretionary MPS portfolios at the end of March, up from £71bn in 2021. Assets in multi-asset funds stood at £174bn, down from £179bn at the end of March 2021. A recent report from Aegon, however, shows that mul...