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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Specialists in equity portfolios in Asia Pacific, emerging markets, global and sustainable investment strategies

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This is a financial promotion for The First Sentier Multi-Asset Strategy. This information is for professional clients only in the UK and EEA and elsewhere where lawful. Investing involves certain risks including:

  • The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
  • Currency risk: the Fund invests in assets which are denominated in other currencies; changes in exchange rates will affect the value of the Fund and could create losses. Currency control decisions made by governments could affect the value of the Fund's investments and could cause the Fund to defer or suspend redemptions of its shares. 
  • Emerging market risk: Emerging markets tend to be more sensitive to economic and political conditions than developed markets. Other factors include greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities. 
  • Derivative risk: derivatives are sensitive to changes in the value of the underlying asset(s) and/or the level of the rate(s) from which they derive their value.  A small movement in the value of the assets or rates may result in gains or losses that are greater than the amount the Fund has invested in derivative transactions, which may have a significant impact on the value of the Fund. .
  • Credit risk: the issuers of bonds or similar investments that the Fund buys may get into financial difficulty and may not pay income or repay capital to the Fund when due. 
  • Interest rate risk: bond prices have an inverse relationship with interest rates such that when interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. 
  • Charges to capital risk: The fees and expenses may be charged against the capital property. Deducting expenses from capital reduces the potential for capital growth

For details of the firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information.  

For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund. 

If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.  

Diversified Growth Fund

Diversified Growth Fund

We invest for purpose

Markets are constantly moving – and when conditions change investors must rethink their asset allocation.

Our flexible and dynamic approach draws on a global opportunity set to meet the multiple, often competing objectives of our clients. The goal is to tie all investment decisions to the ultimate objective of the portfolio.

Time has shown that asset allocation decisions are the dominant driver of overall portfolio returns and multi-asset investing provides risk and return benefits that are not typically achievable by investing in a single asset class. 

Flexible

Asset allocation can be a rigid and mechanical process, but for objectives-based investors like us, flexibility is key. The appeal of individual investment opportunities varies over time based on changing market conditions. Broadening the global opportunity set and reducing constraints increases the likelihood of delivering on objectives.

Dynamic

Being truly dynamic, or regularly reviewing the investment mix to, we believe is critical to the successful delivery of investment objectives. Static approaches to asset allocation rely on theoretical long-run assumptions, while most investors have goals across several time horizons. By dynamically shifting exposures, we aim to take advantage of shorter-term investment opportunities.

Disciplined

Grounded in research, our experienced global multi-asset team blends qualitative insights with the rigour and discipline of quantitative underpinnings. This evidence-based approach has operated over more than 23 years across a wide variety of market environments

Here at First Sentier Investors, we invest with purpose. We seek to balance the trade-off between upside risk (meeting the Fund’s performance target) and downside risk (the chance of capital losses). This is what we call objective based investing – combining the benefits of long-term asset allocation with dynamic short-term tilts to enhance returns and abate risks.

Why invest with us?

  • The fund aims to protect against inflation and provide growth by achieving a positive return of 4% in excess of UK Retail Price Index (RPI) over a rolling five year period.

  • Unlike traditional multi-asset portfolios, there is no requirement to allocate to any particular investment type. We only invest in opportunities that offer the best risk-reward for investors, blending a combination of assets together  across the full spectrum of equities, bonds, currencies and commodities that have the highest likelihood of delivering on the performance target while also considering sequencing risks.

  • By dynamically shifting exposures, we aim to take advantage of short-term investment opportunities as they arise. History has shown that being dynamic, making well-timed changes to the investment mix, can have significant positive influence on long-term performance.

Where does an objective-based fund fit within a broader portfolio?

Investing in an objective-based multi-asset strategy with flexible investment ranges free your manager to deliver more consistent returns with less risk, but how can a fund that moves in - and out - of asset classes fit within your broader asset allocation?

Here are three ways an objectives-based fund can be used in your portfolio:

Growth diversifier

An objective-based strategy can be added to the equities segment of your portfolio with the aim of delivering 'equity-like' returns with lower volatility

Core or whole portfolio solution

Use your objective-based strategy as a one-stop-shop for delivering on an overall portfolio objective - including outsourcing of asset allocation and governance.

An alternative

An objective-based strategy could fall into the 'growth alternatives', 'defensive alternatives', or 'absolute return' categories, depending on the fund. 

Adviser Resources

DGF Brochure

Brochure for the Diversified Growth Fund

DGF ESG Brochure

ESG brochure for the Diversified Growth Fund

Questions your client might ask about our Diversified Growth Fund

How much will I pay?

The First Sentier Diversified Growth Fund Class E (Accumulation) has an annual Ongoing Charges Figure (OCF) capped at 0.55%. This share class is available until it reaches its capacity of £250 million. For further information on other share class availability please a contact a member of the Sales Team.

What tools does the Fund use to generate returns?

The Fund is designed to achieve real (i.e. above inflation) capital growth of 4% while minimising drawdown risk. The ability to invest dynamically across a broad universe of asset classes globally provides a high degree of diversification. In addition to having a diversified mix of assets the fund can implement a variety of downside protection strategies. The protection strategies used may vary depending on market conditions but are primarily put options on equity indices, options on currency, outright buying of volatility, and FX strategies. While they can subtract from overall performance in strong markets, they may act to lower volatility and mitigate portfolio risks.

Where can I get an external risk rating of the Fund?

The fund has been awarded 4 out of 10 risk rating by Defaqto. For information on how risk ratings are determined please visit www.defaqto.com/fund-managers/risk-ratings.

The Fund has also received a Distribution Technology (DT) risk profile of 4. For more information on this rating click here.

Is the Fund rated?

Yes, the fund has been awarded a 4 Diamond rating by Defaqto and a 4 out of 10 risk rating – For more information on how Defaqto calculate their Diamond ratings, please visit their website and for information on how risk ratings are determined please click here.

The Fund has also been awarded the title of ‘Recommended Fund’ by the adviser centre, to see the full bulletin please click here.

The Fund has also received a Distribution Technology (DT) risk profile of 4. For more information on this rating click here.

How do you protect against capital loss?

The Fund is designed to achieve real (i.e. above inflation) capital growth of 4% while minimising drawdown risk. The ability to invest dynamically across a broad universe of asset classes globally provides a high degree of diversification. In addition to having a diversified mix of assets the fund can implement a variety of downside protection strategies. The protection strategies used may vary depending on market conditions but are primarily put options on equity indices, options on currency, outright buying of volatility, and FX strategies. While they can subtract from overall performance in strong markets, they may act to lower volatility and mitigate portfolio risks.

First Sentier aren’t known for multi-asset, why have you decided to enter this market?

We acknowledge that we’re far from the ‘first to market’ with a multi-asset fund. However, First Sentier Investments’ Multi-Asset Solutions (MAS) team has designed and implemented tailored risk-managed, multi-asset portfolios since 1995. We have extensive experience working with institutional clients, which includes some of the world’s largest strategic investors, pension and insurance funds and sovereign wealth funds. Based in Singapore, Sydney and London, the senior members of our team have been working closely together for more than 20 years.

What are your top ten holdings?

The First Sentier Diversified Growth Fund is primarily an asset allocator, rather than a stock picker. This means the Fund tends to invest in 'markets' such as 'US Equities', rather than individual stocks. As such, the Fund can hold hundreds of securities at any one time, which reflects broad exposure to various asset classes and investment strategies.

For a true and transparent overview of our holdings, check out our interactive tool the DGF Navigator, to see all of our asset allocations since inception.

How do you measure volatility and how volatile is the fund?

For objective-based portfolios such as the First Sentier Diversified Growth Fund the true risk to investors is that their capital doesn’t grow at the same rate as their liabilities (required growth rate). The risk is best defined not by the volatility of returns but rather by the possibility that there may not be enough money available when needed. For example, an allocation to cash may be seen as a low risk allocation when measured in terms of volatility. For our portfolio, this is not the case as a static allocation to only cash is not going to provide a 4% return above inflation over the next five years. So this allocation, while having a low volatility, would be very risky for someone with a long investment horizon who needs to grow their capital. In line with this objective, we would expect to deliver a return of UK RPI +4% (gross of fees) with a volatility of less than 15% per annum (typically <10%).

Meet the team

Andrew Harman

Senior Portfolio Manager

Epco van der Lende

Co-Head of Multi-Asset Solutions

Jan Baars

Senior Portfolio Manager

Kej Somaia

Co-Head of Multi-Asset Solutions

Ready to invest?

Contact a member of our Sales Team