HEAD-TO-HEAD: Artemis versus Seneca

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Darius McDermott, Chelsea Financial Services and FundCalibre

Introduction

During periods of heightened volatility, mixed-asset products have often promised investors a smoother ride, as their fixed income asset allocation should protect on the downside when equity markets are weak.

However, mixed-asset funds have fallen out of favour this year. Year-to-date, the fund category saw net outflows of $2.6bn globally, according to data from Morningstar Direct.

Nevertheless, the outflows are mild compared to pure equity funds, which saw net redemptions of $153bn during the same period. The clear winners are fixed income products, which had net inflows of $531.6bn.

The net outflows from mixed-asset funds have not stopped fund managers from launching such products, however. For example, nearly 30 mixed-asset products were launched in Singapore in the past year, including those managed by Aviva Investors, Fullerton Fund Management, Aberdeen Standard Investors, Capital Group, Nikko Asset Management, UTI Mutual Fund and Lion Global Investors.

In addition, multi-asset products that provide income should be attractive to investors in Asia, Barbara Claus, Frankfurt-based senior manager research analyst for fund research at Morningstar, told FSA previously.

Against this backdrop FSA asked Darius McDermott, managing director of Chelsea Financial Services and Fund Calibre, to compare two global multi-asset income funds: the Artemis Monthly Distribution Fund and the Seneca Diversified Income Fund, which are only available to professional investors.

Source: FE Analytics, Morningstar Direct. In US dollars

* 7 October 2016 – 10 October 2019

** 8 October 2016 – 4 October 2019

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