Multi-Asset Funds Now Anchor 40–45% of Intelligent Pensions’ £400m Portfolio, a Structural Shift Post-2022 Volatility Spike

Historically, portfolios heavily weighted in single-strategy funds have underperformed in periods of market stress. Intelligent Pensions’ move toward multi-asset strategies reflects a broader industry

But is this shift a market-driven necessity or a pragmatic response to advisory operational constraints?

Key trends observed:
a) Multi-Asset allocation increased sharply from ~15% in 2018 to 40–45% by 2024
b) Single-Strategy allocation concurrently dropped from ~70% to around 40%
c) Bond exposure steadied around 15%, maintaining defensive ballast
d) Alignment with Dynamic Planner’s risk assessment model enabled more responsive rebalancing

This wasn’t just about performance optimization. Douglas Kearney highlights a fundamental operational challenge- the inability of advisory staff to manage rapid, bespoke portfolio adjustments at scale for a growing client base. Multi-asset funds act as a “foundation” that simplifies risk management while preserving customization via complementary single-strategy overlays.

Market & Advisory Implications:
➡️ Multi-asset funds provide scalable risk diversification, essential in volatile macro regimes where tactical agility is critical but human resource limited
➡️ Advisory firms can deliver faster risk alignment to clients without a linear increase in staff, addressing capacity constraints
➡️ US equities remain a strategic overweight due to concentration of global leaders, despite persistent valuation concerns noted for decades
➡️ Conviction-heavy funds like Baillie Gifford delivered strong growth but lagged in reacting swiftly to the 2022 downturn, underscoring trade-offs between conviction and flexibility
➡️ Fixed income funds such as Royal London Sterling Extra Yield bond continue to offer consistent income and stability amid turbulence

Risk & Sector Exposure Notes:
> High conviction can delay portfolio adjustments, amplifying drawdowns in sharp corrections
> Fixed income allocations provide necessary portfolio ballast, particularly in rising interest rate environments

To effectively manage client portfolios in today’s fast-moving markets, embed scalable multi-asset solutions as the core portfolio structure. Overlay selective single-strategy funds to capture alpha and client-specific themes without overwhelming operational bandwidth.

By doing so, advisory firms can maintain agility, control risk, and serve growing client bases sustainably.