| Whenever Wall Street comes up with a new | | | | 3% per annum to manage the dramatic decline of |
| product it behooves Main Street to be skeptical | | | | your assets. The advent of Exchange Traded |
| about the hype. In this article we are going to | | | | Funds and Exchange Traded Notes are the other |
| look under the hood of the latest product to get | | | | driver behind multi-asset funds. Now fund |
| the UK financial services market in a tizz: the | | | | managers can use these listed tools to access a |
| multi-asset fund. Whilst there is nothing new in | | | | broad range of asset classes. Indeed the Gold |
| having a balanced fund of bonds and equities, | | | | ETF is though to have boosted the price in gold |
| there are more and more funds being launched | | | | as it was formerly quite tricky to invest in |
| that offer access to a broader range of asset | | | | without purchasing the physical product. |
| classes, including: private equity, commodities, | | | | The funds are good for long term investors, but |
| bonds, equities property, and hedge funds. What | | | | they wouldn't be a good holding for anyone with a |
| is also new about these products is the low cost | | | | very high or very low risk profile. A further |
| structures that they are being offered in. | | | | concern is that since they are relatively new |
| Low cost structures have become a reality as | | | | products we can't be sure if they will perform as |
| the result of consumer demand. After years of | | | | intended over time. So in summary they look like |
| being hammered by large fees these have finally | | | | a product with promise for certain types of |
| come under the microscope as fund values have | | | | investor. |
| plummeted. It seems a bit rich to pay someone | | | | |