Multi-asset sector continues expansion
Research and ratings house, Lonsec has pointed to a rapid expansion in the number of multi-asset funds and products, claiming this is generating a new wave of competition, as fund managers rush to position themselves in the burgeoning sector.
The Lonsec claim has come as it releases its Multi-Asset Sector Review, which includes 34 new additions to its multi-asset fund coverage in 2015, which follows an increase of 31 funds the previous year.
The company said this growth was providing investors and financial decision makers with a growing range of investment products, driven by the recent popularity of the multi-asset approach as well as innovations that allow multi-asset funds to leverage their scale and broaden access for investors.
Commenting on the findings, Lonsec General manager of Fixed Income and Multi-Asset, Libby Newman said some of the growth was attributable to more widespread use of ‘white label' products, which allowed advisers to gain access to products and services typically tailored to wholesale and small institutional clients.
"We are also seeing a resurgence in investment bonds, which are popular among investors seeking alternative ways to tax-effectively save," she said.
Newman said she believed the rise in the number of multi-asset products was the natural result of continued growth in funds under management and ever-present competitive pressures.
"With the flow of funds, changing regulatory environment and central bank intervention distorting asset prices, we have seen a proliferation of new investment products," she said.
"In the multi-asset space, solid interest in real return strategies has seen global players enter the Australian market in quick succession. Many have established track records in real return investing in the US and UK, and are keen to test their wares against Australian CPI plus benchmarks."
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