More than 20 new funds were launched in December, according to Morningstar Direct, with a number of one-stop shop options for investors.
Several multi-asset fund ranges were launched in the final month of 2020, suggesting a strong investor appetite for funds offering an entire portfolio in one product. That’s not surprising after a volatile year, which made portfolio construction difficult for even the most seasoned of investors.
7IM launched a low-cost Pathfinder range of three funds directed at financial advisers looking for diversified portfolios for their clients. The funds – labelled Pathfinder 1, 2 and 3 – are built to suit different risk tolerance and each comes with an enticingly low annual management fee of 0.22%.
Verona Kenny, managing director of intermediary at 7IM, says: “In the current environment, access to truly deep levels of diversification has never been more important and we believe there is appetite for a low-cost range of volatility managed funds, underpinned by a proven strategic asset allocation framework and investment philosophy.”Investment giant M&G has also launched a new range of multi-asset funds, a three-strong suite of sustainable funds: M&G Sustainable Multi-Asset Balanced, Cautious and Growth.
Environment, social and governance (ESG) issues are at the heart of these funds and M&G part of each fund’s portfolio will be directed towards impact, that is investments that have the explicit aim of addressing one or more global environmental or social challenges. Maria Municchi, manager of the range, says the funds will aim to meet the demand for investors’ savings to “produce good financial returns and make a positive contribution to the planet”. The cautious fund will have up to 35% of assets invested in equities, the balanced option up to 60%, and growth up to 100%.
|Fund Name||Morningstar Category|
|7IM Pathbuilder 1||GBP Cautious Allocation|
|7IM Pathbuilder 2||GBP Mod Cautious|
|7IM Pathbuilder 3||GBP Mod Allocation|
|Baille Gifford Healthcare Innovation||Equity Healthcare|
|Blenheim Diversified Fixed Income||n/a|
|Developed World Sust Equity Index||Gbl Lg-Cap Blend Equity|
|Janus Henderson Global High Yield Bond||Gbl High Yield Bond|
|JPM Emerging Markets Sustainable Eq||Gbl Emerging Markets|
|L&G Future World Multi-Index 3||GBP Moderately Cautious|
|LGPS Central Glb Multi Factor Eq Index||n/a|
|LGPS Central Glb Act EM Bond Multi Mnger||Other Bond|
|M&G Sustainable Multi-Asset Balanced||GBP Mod Allocation|
|M&G Sustainable Multi-Asset Cautious||GBP Mod Cautious|
|M&G Sustainable Multi-Asset Growth||GBP Flexible Allocation|
|Morgan Stanley Sustainable Fixed Inc Opp||Global Flexible Bond|
|Ninety One EM Local Currency Debt Opp||Global Emerging Markets|
|VT Asset Intelligence Defensive||GBP Mod Cautious|
|VT Asset Intelligence Growth||GBP Adventurous Alloc|
|VT PortfolioMetrix GBP Core Asrtv||GBP Adventurous Alloc|
|VT PortfolioMetrix GBP Core Balanced||GBP Mod Adventurous|
|VT PortfolioMetrix GPB Core Cautious||GBP Mod Cautious|
M&G was not the only firm to add to its sustainable investment offering in December, however. L&G launched its Future World Multi-Index 3 fund with an aim of generating growth and income while incorporating ESG considerations. The fund invests in a range of index tracker funds and some individual investments such as property, but typically will have a higher exposure to bonds and cash than to equities. It sits in a range of risk-rated funds which vary in their risk exposure on a scale of one to 10. The ongoing charge is 0.36%.
And, with Covid-19 vaccines on investors’ minds, it was a timely launch for the Baillie Gifford Health Innovation fund. Not a completely new launch, the fund will sit alongside a Dublin-registered version of the fund which has been run by Julia Angeles, Rose Nguyen and Marina Record since October 2018 and returned 79% in 2020. The portfolio is concentrated, with just 34 holdings, all focused on “transformational changes in the future of healthcare”.