Midas Capital believes multi-asset investing is more effective when combined with an element of multi-manager.
Many of the multi-asset funds launched recently are run on a fettered basis but Midas believes multi-asset investing suits a multi-manager framework because it is difficult for one management group to perform strongly across all asset classesThe company, which has recently established distribution links with Zurich and Sterling Assurance, runs two funds that combine multi-asset investing with a hybrid multi-manager approach. Under this model, Midas manages a portfolio of UK equities in house and selects third-party funds for other asset classes.
Midas says managing part of the portfolio in house reduces the higher costs associated with multi-manager funds. It says multi-managers who focus exclusively on third-party funds may have higher total expense ratios and will not look good value if they underperform.
Head of business development David Thomas says: “Midas Capital has always held the view that clients’ interests are best served through an open-architecture approach to multi-asset investment. We adopt a very open-minded approach to the use of third-party funds.
“We do not think it stands up to scrutiny to believe any one investment house would make the right decisions in every market.
“We are also delighted that we have completed a link to Zurich and Sterling Assurance. There has been significant demand from advisers to access Midas funds across these product ranges and we are pleased we can now meet this demand.”