Multi Asset Strategies Fund


Fund Overview

The Fund aims to deliver a combination of income and capital growth, while managing volatility and downside risk through diversified multi asset strategies. It seeks to achieve an annualised total return of 4% over cash (defined as the Sterling Over Night Index Average or SONIA) over rolling five year periods. It aims to do this by investing primarily in collective investment strategies with exposure to UK and overseas equities, fixed income securities, commodities, money-market instruments, deposits and cash.

There is a risk to capital and there is no guarantee that such returns will be achieved over this or any particular period.

Fund manager

MAST is managed by Trevor Greetham, RLAM’s Head of Multi Asset, and his team. Prior to joining Royal London in 2015, Trevor was Asset Allocation Director for Fidelity where he was responsible for implementing tactical investment decisions across a wide range of institutional and retail funds, including the Fidelity Multi Asset Strategic Fund. From 1995 to 2005, Trevor was Director of Asset Allocation for Merrill Lynch. Trevor qualified as an actuary with UK life assurer Provident Mutual and has a Master of Arts in Mathematics from Cambridge University. He has 26 years’ investment experience. Trevor is supported by an established team of eight multi asset investment professionals with an average experience of around 20 years. The team is responsible for the tactical asset allocation strategies applied across approximately £65 billion of Royal London funds.

Investment approach

The Fund seeks to achieve returns in excess of cash (cash+4%) while managing volatility and downside risk through diversified multi asset strategies. The Fund uses two distinct types of strategy to achieve its objective. These are Risk Premium Strategies and Tactical Asset Allocation (“TAA”) Strategies. 

Risk Premium Strategies aim to generate returns from positive market trends by allocating to a diverse range of assets in a risk-conscious way. Tactical Asset Allocation Strategies aim to exploit opportunities, irrespective of market direction, when changes in the investment backdrop lead to a mispricing of assets.

At the core of our process is the Investment Clock, a model linking asset class returns to the global business cycle. Market leadership passes from one asset class to another as the world economy expands and contracts and as inflation rises and falls. Investors, in aggregate, tend to extrapolate trends and miss important turning points, leading to periods of over and undervaluation relative to the fundamentals that we aim to exploit.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. Sub-investment grade bonds have characteristics which may result in a higher probability of default than investment grade bonds and therefore a higher risk.