Women & Money Cafe - 85. Investing Smarter, not Harder: WTF is a multi asset fund?

85. Investing Smarter, not Harder: WTF is a multi asset fund?

06/25/23 • 11 min

Welcome to Women & Money Cafe, where we explore all things finance through the lens of women. In today's solo episode, we'll be diving into the topic of multi-asset funds.
First, let's talk about what a multi-asset fund actually is. As the name suggests, it's a fund that includes multiple assets, such as stocks and shares, bonds, property and commodities, blended together to create different levels of portfolio risk. By investing in multiple assets, we can help to reduce risk and achieve more predictable returns.
So why would you invest in multi-asset funds? Well, for starters, they're designed to help manage risk and provide broad diversification. A multi-asset fund contains a variety of assets that are managed by a fund manager, who is responsible for keeping the risk level appropriate by buying and selling different assets as needed. This means that investors only need to determine their desired risk level and buy the appropriate fund while the fund manager takes care of the rest.
When investing in a multi-asset fund, there are two types to consider. The first is active, where a fund manager chooses investments daily and aims to outperform the market index. Alternatively, there are passive multi-asset funds, which have lower management fees and buy tracking funds to follow the index.
When choosing a multi-asset fund there are different factors to consider such as an existing pension or starting with an ISA. It's important to look out for keywords such as managed, portfolio, active, passive, cautious, moderate, balanced, or adventurous.
And while stocks and shares typically make the most money over time, other assets such as bonds, guilts, and property, are included in the fund to help balance risk and volatility. Asset allocation refers to deciding how much of the fund is allocated to each asset, with stocks and shares being the asset class with the greatest impact on the level of risk and volatility.
Ultimately, multi-asset funds are a great option for anyone looking to manage risk and achieve diversified returns while investing. By letting a fund manager handle the assets and making allocations based on your desired risk levels, it's a low-maintenance option that can save you time and stress in the long run.
That's it for this solo episode of Women & Money Cafe. Be sure to tune in next week as we'll be discussing a brand new topic with a special guest. As always, thanks for listening and see you next time!
YOUR HOST

Julie Flynn is an experienced independent financial adviser and financial coach. Justice and equality drive Julie. Which is why she’s spent years studying and researching how stress affects our financial decision making.

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Previous Episode

84. Final Salary Pension: To Transfer or Not to Transfer? (pension mini series 5)

In this episode, we're diving into the controversial topic of what to do with a final salary pension. Many personal finance forum posts claim that providers require a letter from a financial advisor in order to transfer a pension, yet advisors seem unhelpful or charge a lot for the required letter. To help us understand this process, I'm joined by Michelle, a pension expert who will provide insights on the topic.
Michelle talks us through exactly what's going on with these pensions. And we touch on the cash equivalent transfer value (CETV) and how it's calculated. While the CETV can be appealing, Michelle cautions that transferring the pension to another scheme can involve investment risk, charges, and the possibility that the pension could run out. In contrast, staying with a final salary scheme offers cast-iron guarantees.
We also discuss scenarios where transferring a pension may be appropriate, such as when you have other guaranteed sources of income or in ill health. However, advisors need to do a lot of background and data gathering before signing the letter required by providers, as it holds a lot of responsibility for saying that the transfer is the right thing to do. Most generally advise against moving transfer values for those under 50 years old, as too much can happen between then and retirement.
Throughout the episode, Michelle offers valuable insights into the pension transfer process, and we cover a range of situations that might influence someone's decision when it comes to a final salary pension.
As always, we're here to educate and inform - it's important to remember that the podcast does not constitute personal financial advice. If you have any questions or want to learn more, we recommend reaching out to Michelle on Instagram at Michelle Lambel Money or your financial advisor. Thanks for tuning in, and don't forget to take care of yourselves!
02:29 "Pension Transfer Advice: Qualifications and Regulations Explained"
05:26 "Understanding Final Salary Pensions: A Gold-Plated Guarantee"
12:28 "The 12-week window for pension transfer values"
14:58 "Empower Women Financially: Share This Episode Now"
21:46 "Scenarios for Transferring Pensions: When to Consider"
26:27 "Customizing Your Retirement: Options and Considerations"
29:09 "Contact Michelle for Final Salary Pension Questions"

YOUR HOST

Julie is best known for her work with women who have lost their partner and coaching financial services business who want to implement fair and transparent charges.
Ebb & Flow Financial Coaching | Bree Wealth & Tax | Instagram
CO-HOSTS
Michelle Lambell started her career in financial services as a Stockbroker in 1999 undertaking both advisory and discretionary investment management. Today she is a Chartered Financial Planner, specialising in retirement planning advice, pensions and investments and a Certified Financial Coach.

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Next Episode

86. Financial First Aid with Abby Birch from Claro Wellbeing

In this episode of Women & Money Cafe, our hosts Emily and Julie are joined by the fabulous Abby Birch from Claro Wellbeing to talk about the innovative concept of "financial first aid." They dive into the importance of understanding our finances to impact our overall health and well-being, and Abby shares her insights on creating a safe space to talk about money matters. The trio also discusses how employers can support their employees through the cost of living crisis and provide helpful resources. Get ready to feel financially empowered and learn how to be a financial "first aider" for yourself and those around you!
GUEST EXPERT: Abby Birch is Claro Wellbeing’s Coaching Excellence & Training Lead. As well as ensuring all Claro’s financial coaches meet its industry-leading standards, Abby empowers employees to become Financial First Aiders. With over 18 years of experience in the financial services industry, including 13 years as an adviser, she is passionate about helping people understand money and giving them the skills and confidence to achieve their financial goals.
Resources:
Money HelperStep Change
YOUR HOST

Julie is best known for her work with women who have lost their partner and coaching financial services business who want to implement fair and transparent charges.
Ebb & Flow Financial Coaching | Bree Wealth & Tax | Instagram
CO-HOSTS
Emily Pool is a Financial Planner and Will Writer. She is passionate about empowering people to invest their wealth (pensions and savings) sustainably and in line with their personal values.

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