Additionally, the external fund manager will change. The £5.2bn fund had been run by Kirsteen Morrison and David Winborne at Impax Asset Management, but Schroders will take over as the fund’s sole manager going forward. The fund will also invest in Schroders’ Global Sustainable Growth and Global Value Equity investment strategies in order to increase the range of companies the fund can invest in.

According to St. James’s Place, the changes – which will come into effect from 24 February 2025 – will improve diversification and introduce a more balanced blend of investment styles, while maintaining the focus on sustainability, which is required to meet the FCA’s new higher threshold for sustainable investments.

See also: “EY: Investors display ‘worrying level of apathy’ to ESG“

Ongoing charges will be reduced by 0.01% as a result of these changes.

Justin Onuekwusi (pictured), chief investment officer at St. James’s Place, said: “The bar to be a labelled fund is very high and will help clients to better understand how their money is being invested in companies that aim to deliver a positive outcome for people and the planet.

“Schroders is a well-regarded expert of sustainable investing, with a diversified approach. They have depth of experience across different equity investment strategies, which can provide a more balanced blend of investment styles for the fund.

“We’d like to thank the team at Impax for their expertise, partnership and their key role in the success of the fund to date. We continue to see Impax as a leader in investing in the transition to a more sustainable economy and a key partner for us in the future.”

Alex Tedder, co-head of equities at Schroders, added: “This investment allocation by SJP underlines the quality of our active investment process and commitment to delivering sustainable outcomes for our investors.

“Clients, investors and the industry are increasingly focused on bespoke investment solutions that can deliver strong risk-adjusted returns together with a comprehensive commitment to sustainability. Our broad-based capability and commitment to active management puts us in a strong position to meet client objectives in a rapidly transforming investment environment.”

This article was originally published by our sister title, PA Future

Adjusted for inflation, most private client portfolios are at a similar level to 2017, with real returns needing to average 6.6% over the next decade to revert to the historical norm of 4% per year.

Inflation spiralled in 2022, reaching a high of over 11% in the UK before inching back towards the Bank of England’s 2% target over the last 18 months. Meanwhile, returns were also down that year with the MSCI World falling 7.8%.

In 2024, private clients made average nominal returns of 8.4%, compared to the historical average of 6.1%.

ARC collects the actual performance of over 350,000 portfolios (net of fees) from 140 investment managers to establish the returns being seen by real clients.

See also: Calastone: Equity funds pull in record £27.2bn inflow in 2024

Shaun Le Messurier, director at ARC Research, said: “Investors may be relieved to see the value of their portfolios back at pre-2022 levels but it is important to consider portfolio returns after inflation has been taken into consideration.

“Our data shows the extent of the damage caused by the market events of 2022. Despite Steady Growth portfolios, which are the most popular among private client investors, generating above-average real returns for the second consecutive year, these portfolios remain 12% below 2021 levels in real terms – and significantly below the 4% a year real target return.”

The firm recently conducted a sentiment survey of CIOs, which found trade wars, inflation and equity concentration to be among the top concerns in the coming year despite a positive sentiment towards equities.

Following Donald Trump’s US election win in November, fears of potential trade wars and supply chain disruption have grown sharply.

According to the survey of 98 CIOs, there is also a lingering unease about persistent price pressures and monetary policy responses.

The funds invest in direct bonds and direct equities across risk levels. In ascending order of risk they are; the IFSL Titan Defensive Portfolio, IFSL Titan Cautious Portfolio, IFSL Titan Balanced Portfolio, IFSL Titan Growth Portfolio and IFSL Titan Adventurous Portfolio.

The range is managed by head of fixed income Peter Doherty and chief investment officer Ian Wood.

See also: FCA slammed as ‘incompetent’ and of questionable integrity in parliamentary report

The equities selections are focused on ‘high quality, attractively priced global opportunities with the potential for sustained and compound high returns on capital as well as mis-priced special situations.’ 

This portion of the fund range reflects the strategy of the IFSL Titan Equity Growth fund.

The direct fixed income holdings are based on the selections of the Titan Fixed Income Fund range, which are focused on a combination of ‘short-term high-quality bonds, large cap investment-grade corporate bonds, and hybrid capital’.

See also: Analysis: Do performance tools really measure up?

Doherty said: “This new fund range builds on the success of recent fixed income fund launches from Titan Investment Solutions. The new multi-asset funds allow us to meet a variety of investor risk needs across Titan Wealth clients.”

“The new range can offer investors stable core holdings or serve as a building block for those looking at renewed risk appetite for medium to long-term investment horizons.” 

Wood added: “The five multi-asset funds bring together the expertise of a management team founded in deep bottom-up research; the funds will be managed in line with proven investment processes and strong risk management practices.”

This story originated on our sister title, PA Adviser.

Wolf has been with abrdn for near nine years, and was previously with Arden Asset Management and Robeco-Sage Asset Management as director of research. He is also an adjunct professor at Georgetown University’s McDonough School of Business.

See also: abrdn appoints Xavier Meyer as investments CEO in restructure

“It is an incredibly exciting time to be stepping into this role. The continued growth of client solutions across our Multi Asset and Alternatives business positions us well for future success. I am proud to lead an incredible team across the multi asset and alternatives spectrum and thank Russell for his insight and guidance over the last decade together and as we transition the team.” 

Along with Barlow’s promotion, abrdn has hired Christian Howells as head of investment specialists for multi asset and alternatives. Howells had previously spent over a decade with abrdn, in roles including global head of investment specialists for Aberdeen Solutions and senior solutions director at Aberdeen Standard Investments before the company rebrand. Most recently, he spent nearly two years at BlackRock Alternative Advisors as head of product specialists for EMEA.

See also: abrdn appoints Jason Windsor as group CEO

Peter Branner, CIO of abrdn, said: “These promotions and appointments set us up for continued success and we are thrilled to reward home grown talent, while ensuring a smooth transition.  Darren has led our Alternative Investment Strategies team for the past decade, overseeing the management of over $15 billion of assets across hedge funds, private credit and risk mitigation. We are also delighted to welcome back our much-respected former colleague Christian Howells, who knows many of our clients well.

“I would like to thank Russell for his commitment and dedication to the multi asset and alternatives business. He leaves with our very best wishes for the future.”

In her new role, Letheren will report to multi-asset fund manager Will McIntosh-Whyte and head of multi-asset investing David Coombs. The hire follows the addition of fixed income analyst Sally Hoang to the team earlier this year.

See also: Rathbones: Funds under management rise but net inflows dip in Q3

Before joining Rathbones, Letheren spent over seven years at RBC Capital Markets, with a focus on equity research in European consumer staples. She was also an officer of RWomen, advocating for gender equality in the workplace.

“We are very pleased to welcome Emma to the multi-asset team where her expertise in consumer staples and her experience in equity research will be a valuable enhancement to our existing capability,” Coombs said.

The change, which took effect from 1 November, affects the VT AJ Bell Income Fund and VT AJ Bell Income & Growth Fund, which have returned 22.51% and 27.58% across the past five years, respectively.

See also: Ian Aylward to lead AJ Bell’s MPS as head of investment partnerships

In addition to the change in fees, the income structure of the fund will now include 11 equal monthly income payments, with a final balance distribution in month 12.

Ryan Hughes, AJ Bell Investments managing director, said: “After another strong year for our Investments business, we are very happy to announce a reduction in charges for our range of income funds. We remain committed to passing on economies of scale to our customers as we continue to grow, ensuring we are delivering excellent value investment solutions alongside strong investment returns.

“At the same time, the move to a ‘smoothed income’ approach helps customers using our income funds manage their investment income. As more investors look to rely on investment income in retirement, this approach will make life easier, with a consistent, reliable income enabling better budgeting and cashflow planning.”

In AJ Bell’s 2024 fiscal year, assets under administration rose 22% while its investment arm increased assets under management by 45% to £6.8bn.

The WisdomTree Global Efficient Core UCITS ETF index aims to provide a 90% exposure to large-cap global developed equities and 60% to global government bond futures, providing a leveraged alternative to other multi-asset funds.

The futures portfolio consists of US, German, UK and Japanese government bond futures contracts with maturities ranging from two to 30 years.

See also: Fulcrum to launch private markets LTAF

“The Efficient Core concept aims to provide another powerful tool for investors to push the boundaries of what is possible to improve their portfolios,” Pierre Debru, head of quantitative research & multi asset solutions at WisdomTree, said.

“By combining the two main tools from the modern portfolio theory, diversification and leverage, it is possible to unlock even more efficient portfolios.

“The result is intended to be a portfolio that maintains a high correlation to the market for possible equity upside, with potentially lower volatility and drawdowns through greater fixed income exposure, while also allowing for allocations to other diversifiers or alternative strategies, like broad commodities, gold or crypto assets.”

The strategy charges a 0.25% total expense ratio. It listed today on the Börse Xetra and Borsa Italiana, and will trade on the London Stock Exchange tomorrow (13 November).

UK-domiciled multi-asset funds also recorded positive net inflows for the first time in five quarters, recording £500m net sales in Q2.

Funds-of-funds led the way in terms of multi-asset sales, recording a six-month trailing growth rate of 33%.

By region, advice firms using multi asset products in Scotland and the North West registered growth of more than 30%. By contrast, the North East saw sales fall 9%.

See also: Calastone: Equity funds suffer worst outflows on record

Benjamin Reed-Hurwitz, Emea research leader at ISS MI and lead author of the MPS Report, says: “It’s encouraging to see positive sales for multi-asset funds for the first time in five quarters. However, it’s still too early to call this a trend; at the very least we’ll need to see that replicated in the next quarter’s data to make that call.

“The previously speculated changes around capital gains tax could well explain why more investor money is being directed towards multi-asset funds, given their tax efficiency. If this was the case, then the recently confirmed tax changes should add strength to this trend.

“As a single fund made up of multiple underlying funds, multi-asset funds allow managers to make asset changes without triggering a CGT liability, unlike model portfolios.

“Still, net sales of just £100m suggest there’s significant churn within the category, with capital largely flowing between fund groups instead of new cash being invested in these vehicles.”

According to ISS MI, ‘insourcing’ remains rare among firms in comparison to the model portfolio business, accounting for just 20% of gross sales in H1.

Some 62% of advice firms use five or more fund providers for their multi-asset offerings.

Reed-Hurwitz said this indicates that financial advisers continue to prefer a selection of ready-made, off-the-shelf investment solutions.

“Additionally, with most advisers relying on the services of five or more asset managers, it’s clear that they value the specialised expertise that each manager brings. This trend highlights a strong demand for diverse, expert-led options to meet a range of client needs.”

Qadri joins from abrdn, where he spent three years as an investment analyst, while Leitao moves over after two years as a senior investment research analyst for Mercer.

Both will report in to 7IM’s head of portfolio management Uwe Ketelsen, who said: “They join at an exciting time for the business as we focus heavily on expanding our investment expertise.

“We have a strong belief in the value-add of fund selection expertise for our clients and we are looking forward to the diversity of thought Asim and Brian will bring into our multi-asset capabilities and overall investment process.”

The strategy will have an “outcome-focused approach” targeting cash plus 4% on an annual basis, rather than working towards a traditional benchmark.

The asset allocation explicitly considers how conditions vary across the market cycle, the firm said. It aims to exploit market inefficiencies and manage downside risk, without the restrictions a traditional benchmark brings.

The managers have free rein to pick securities across the entire spectrum of assets managed by other Robeco equity and fixed income teams. This means it will not necessarily follow the usual 60-40 multi-asset mix mirrored by standard benchmarks.

See also: BCA Research: Bitcoin’s volatility is a feature asset allocators can use, not a bug

The new offering joins the Sustainable Income Allocation, Sustainable Diversified Allocation and Sustainable Dynamic Allocation options in the range.

Colin Graham, head of multi-asset strategies at Robeco, said: “Many investment strategies are focused on a benchmark. At Robeco we believe our clients don’t start their investment journey with a benchmark, but with an investment goal.

See also: Invesco says growth and employment figures now driving markets as it takes defensive position

“Therefore, the central focus of this is achieving an annual return of cash plus 4% return at a medium risk level. However, we’re turning this around by using some of the best underlying security selection from across Robeco, whether that’s from the equity side or credit selection.”

See also: Downing’s Evan-Cook: How advisers can tackle the dual threat from AI

This story originated on our sister title, PA Adviser.

Brain joined Newton in 2004 and led the firm’s fixed income team, overseeing a range of global bond strategies including the Global Dynamic Bond strategy, which launched in 2006.

See also: Dominic Byrne moves to AXA IM after near 25 years at abrdn

He had previously held senior roles within the fixed income desks at MSG & Partners, Investec and Credit Suisse.

In a LinkedIn post, Brain said: “My fixed income and multi-asset career saw financial crisis, high inflation, deflation, high rates and negative rates, stock market crashes and also a pandemic.

“We didn’t always get it right but we have been able to grow the wealth of our clients and be a success of which I am very proud. I have been fortunate to work with many talented people in an industry that has constantly evolved,” he added.

He previously spent eight years at Kames Capital (now Aegon AM), where he managed sustainable and global equity portfolios.

An Aegon spokesperson told Portfolio Adviser his record of managing both global and responsible portfolios alongside his previous experience at the firm made him “an ideal candidate” for the role.

Meanwhile, current head of equities Philip Haworth has left the firm. He has co-managed the £160m Aegon UK Equity fund since 2015.

“Philip has worked at Aegon AM since 1995 and we would like to thank him for his contribution to the team over this time and wish him all the best for the future,” the spokesperson added.

See also: Amundi appoints deputy group chief investment officer

Goddin’s previous role was as a fund manager at Artemis.

He exited the firm in March alongside fellow managers Craig Bonthron, Jonathan Parsons and Ryan Smith. The quartet were hired in 2020 from Kames Capital to launch the firm’s Positive Future impact equity strategy.

Since launch in April 2021, the strategy’s total return was down 37.51%, compared to the IA Global sector average which was up 19.03%, according to FE fundInfo.