Multi-asset fund

A multi-asset fund holds several asset classes in one vehicle and changes the mix within its own limits. In the UK, Investment Association sectors group many such funds by their share in equities. A fund in the Mixed Investment 40-85% Shares sector must hold between 40% and 85% in company shares.

A policy with allocation ranges must decide how to count such a fund. It can be a class of its own, with its own band. Or it can be split into its equities, bonds and cash by look-through, which needs the fund’s composition.

Counted as one class, a fund can hide equity that the policy caps elsewhere. In Acclimetry, the first choice is an allocation band on a class you name, such as multi-asset. The second is the look-through exposure limit, applied through the fund’s dated composition.