By Rachel Efetha, Chartered Financial Planner with Anstee & Co.
Multi-Asset, Managed Portfolio, Discretionary – what do all these investment fund options mean?
Imagine you would like a new suit. What options have you got? You can pop into John Lewis and buy one off the hanger. It will be a genuinely nice suit with decent quality material and well-made stitching. However, chances are it will not completely fit you – maybe if it fits in the legs, the waist is too tight – or if it fits in the waist the legs are too long. You need a different-sized jacket to the trousers, is that possible or are they sold as one suit in one size?
Multi-Asset Fund
Multi Asset is the investment equivalent of the John Lewis suit. There is nothing wrong with it, it does the job it needs to but is trying to cater for everyone’s needs – the 22-year-old graduate starting their first pension to the 59-year-old wanting to retire next year. The fund manager will just aim to maximise performance within the guidelines of the fund’s objectives.
Discretionary Fund
Let us go back to suits, if you want one that well and truly fits you, you can get one tailor-made in Saville Row. You would expect an even higher quality of fabric and finish, and it will fit like a glove (or a tailor-made suit). You would expect to pay a premium above John Lewis for this bespoke service.
So that is our Discretionary Fund Manager (DFM) – they are investing specifically for you. If you want a 4% income from your fund, they will focus on income-producing assets. If you know you want to take a lump sum of £10,000 out of your fund in one year’s time, they will start to sell assets when they spot an opportunity for you. A great advantage is for those with a general investment account – which is not in a pension or ISA wrapper and where capital gains tax is payable. The Discretionary Fund Manager will ensure that they manage your capital gains and aim to use your allowances yearly rather than letting the gains build up.
Managed Portfolio
So, what’s a Managed Portfolio? This is a bit of a hybrid – it is an off-the-hanger suit made by a tailor in Saville Row – so you are getting the quality of the materials and finish, but it is not made to measure. And therefore, is a bit cheaper for you. To put this back into investment terms, a Managed Portfolio is normally in the style of the DFM but includes other people’s assets and is not bespoke to you.
How Anstee & Co can help you make the right investment fund choices.
If you are considering your investment options but are unsure about how they may impact on your financial future, we can help. We at Anstee & Co. are Independent Financial Advisers which means that the financial advice we offer is unbiased.
The initial meeting is at our cost, so why not contact us today? A meeting can be arranged at your home or our Head Office located at-
- Kettering, Northamptonshire
Additionally, our financial planners live and make use of meeting rooms in-
- Bedford, Bedfordshire
- Northampton, Wellingborough and Thrapston in Northamptonshire.
- Market Harborough, Leicestershire
We make full use of video conferencing facilities such as-
- Zoom
- Microsoft Teams
- Skype
- Facetime
We can also arrange a conference telephone call. So, there is no need to visit an office as all work can be handled remotely. The choice is yours. Our expertise covers all aspects of financial planning including pensions, investments and mortgages.
If you have any thoughts on this article, “What are your different investment fund options?”, then we would love to hear from you.
Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).
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