Multi-asset funds contain investment across several different asset classes, typically equities, bonds, cash, property, commodities, and possible alternative asset classes. They provide the opportunity to invest in a pooled vehicle with a single price while providing a level of diversification which otherwise would be difficult to achieve without a significant investment.
What are the benefits of Multi-Asset funds?
Diversification, i.e. not having all your eggs in the one basket is a key benefit of multi-asset funds. As investments are spread over a broad range of strategies, styles, sectors, and regions, this can help cushion the occasional shocks that come with investing in a single asset class. Many investors look to multi-asset funds to provide a lower-risk investment rather than a pure equity fund, but with greater prospects for growth than a pure bond fund. In times of market stress, a multi-asset fund has the ability to deliver strong returns with reduced volatility.
Investment strategy at Merrion Investment Managers
Merrion Investment Managers (MIM) was originally established in 1986, and acquired by Cantor Fitzgerald Ireland in 2018. The team has a proven track record in multi-asset investment funds dating back to 1993.Active investment decisions are made based on a robust three-pillar investment process of macro-economic, valuation, technical and sustainability analysis.Risk is monitored at all levels of this process. The ideas and themes resulting from this analysis are reflected in the make-up of the funds available. Through the Merrion Multi-Asset fund range, investors can choose their own level of risk and potential reward depending on their investment objectives.
Macro-economic analysis: Analysis of economic growth dynamics and its drivers to determine the outlook for interest rates, bond yields and credit spreads, leading to conclusions about the winners and losers under various scenarios.
Valuation analysis: Assessing the valuation of equities relative to other asset classes and historic levels, taking account of the ever-changing technological, economic, competitive and regulatory environment.
Technical analysis: Analysis of price movements, momentum, investor positioning, and volatility to identify trends and inﬂection points.
Environmental, social and corporate governance (ESG): Environmental, social and corporate governance (ESG) is also an integral part of the investment process for all funds, as is evident from the current ESG AA rating, which compares to the market average score of a single-A.
Multi-Asset 70 (Managed) Fund- Flagship Fund
The flagship Multi-Asset 70 (Managed) Fund fund aims to grow investment over time with an anticipated exposure of 60% to 80% in return-seeking investments such as equities, property and alternatives (growth assets) with the balance invested in bonds and cash (defensive assets). The alternative allocation has the flexibility to be growth or defensive in nature dependant on the investment teams views of market conditions. One of the key defensive strategies that the team can implement is buying insurance against stock market falls.
At the end of March, the flagship and longest running fund, the Multi-Asset 70 (Managed) Fund was ranked No. 1 in Ireland by the AON Hewitt independent multi-asset fund survey over 1, 3 and 5 years*. This is a significant achievement for the fund and proof of a robust investment strategy delivering for investors.
The Multi-Asset 70 (Managed) Fund has delivered a gross return of 10.6%p.a.** since inception and is the Number 1 performing global multi-asset fund manager in the Irish market since its inception over 20 years ago.***
The three Merrion Multi-Asset funds have also been awarded a 5-Star MorningstarTM rating, the highest award or rating, and only given to the top 10 funds within a fund category. As an example, there are over 420 funds within the Merrion Multi-Asset 50 category. The Morningstar seal of approval is testament to the Merrion Investment Managers tried and trusted investment process, and proven track record.
*Aon- Hewitt Survey
**Source: Merrion Investment Managers as at 31.03.2021
***Source: MoneyMate 28th February 2021 based on Merrion’s inception (Oct 1993) return figure for the Merrion Managed Fund in the MoneyMate multi asset/managed fund survey
Merrion Multi-Asset 70 (Managed) Fund: Consistent Outperformance to end April 2021
To view our monthly flyer on the Merrion Investment Managers multi-asset fund range, providing an overview of performance and track record, please click here.
To view the AON Hewitt survey results please click here.
Fearghal Lawlor is Head of Business Development at Merrion Investment Managers.
Contact details for each individual team member can be accessed here on our website should you wish to speak with a Portfolio Manager or Account Executive.
Merrion Capital Investment Managers Ltd. (trading as Merrion Investment Managers) is regulated by the Central Bank of Ireland. Cantor Fitzgerald Ireland Ltd. is regulated by the Central Bank of Ireland is a Member Firm of Euronext Dublin and the London Stock Exchange.