Disrupting the market

But sometimes it can be beneficial to venture further afield. Think about going on holiday: everyone loves a “staycation”, but sticking to your home country can mean missing out on the thrill of the new – whether it’s sampling a spicy dish, learning a greeting in a different language, or simply seeing the sun rise over unfamiliar vistas.

The same applies when it comes to investing. Putting your money solely in your home market can mean missing out on attractive opportunities available elsewhere.

A single country versus global coverage*

Let’s look at the numbers for various European markets. If you’d invested solely in UK shares, as measured by the FTSE 100 Index, over the five years to end-December 2023, you’d have earned an average annual total return of 6.75 per cent. Similarly, investing only in German stocks, as measured by the DAX benchmark index, would have returned 8.94 per cent annually. France’s CAC 40 returned 12.10 per cent per year over the same period.

The data shows investors in these markets would have benefited from looking further afield. Over the same five years, the S&P 500 benchmark of US-listed stocks delivered annual returns of 15.68 per cent. The strong performance of the MSCI World Index over the period – which covers 1,480 companies in 23 countries, and posted an annualised return of 13.37 per cent – further illustrates the advantages of broader global exposure.

A similar story is playing out in fixed income. Bond prices around the world were propped up for years by central bank quantitative easing, but as rates and inflation have risen we have seen far more dispersion. In this environment it makes sense to explore investment opportunities across global markets and strategies. 

Going global

Now, it goes without saying past performance is never a guarantee of future returns. What these examples hopefully illustrate is the value of broadening your investment horizons. But deciding to go global is just the first step.

Think back to our holiday analogy. There are travel options available for almost every budget – from backpacking in hostels to luxury bespoke tours. But the destination is more important than the price you pay, and seeing the world needn’t cost the Earth. The same is true in investing; there are a variety of ways to access the benefits of international markets, and some are more expensive than others.

Here’s our view: all else being equal, a globally diversified portfolio that encompasses a range of assets and strategies should prove more robust than a less-diversified alternative, especially during challenging economic and market environments. But we also believe such a solution can be provided at a low cost to investors.

This is exactly what we look to offer our clients with our MAF Core multi-asset range, at what we consider to be a very competitive ongoing charges figure of just 0.15 per cent.

How we do it

As to how we can offer a global multi-asset solution at just 0.15 per cent, it helps that we manage a wide range of asset classes in house. So, in addition to our dedicated team of 45 multi-asset professionals, we draw on all the insights and expertise of specialist investment teams across geographies and asset classes.

Our asset allocation is global and built on a more comprehensive set of methodologies than your average multi-asset solution. That’s why we can offer our MAF Core investors access to assets you would only typically find in more expensive solutions, such as high yield and emerging-market debt, while still keeping costs down. And who knows? Perhaps our investors could put the savings towards their next overseas trip. Think big – there’s a world out there to explore.