One of the advantages of our cost-effective outsourced investment solution MyFolio is its active strategic allocation, which ensures our portfolios are not overly exposed to any single region.

We believe this approach not only mitigates risk but also positions us favourably against market-weighted fund of fund strategies.

Global diversification: a pillar of stability

The MyFolio ranges are meticulously designed to achieve global diversification. By spreading investments across various regions, we reduce the risk associated with economic downturns or volatility in any one area. This ensures that no single region dominates the portfolio and provides a more balanced and resilient investment strategy.

Differentiation through active asset allocation

Unlike fund of fund strategies that follow global market cap weightings of indices, MyFolio employs active asset allocation.

This means our investment decisions are driven by forward-looking, ten-year expected returns and market analysis. In contrast, other risk-targeted fund strategies may rebalance to an arbitrary market-cap-weighted index, potentially exposing investors to concentration risks. 

Our proactive approach can provide resilience in sharp market rotations in areas where there is market dominance, such as what we are currently witnessing in the USA. We believe this should protect our investments from the vulnerabilities that other strategies may face.

Forward-looking investment philosophy

At the heart of MyFolio's strategy is a risk-based, forward-looking investment philosophy. We believe that managing money should not be about looking in the rearview mirror but about anticipating future trends and positioning our portfolios accordingly. This proactive approach ensures that we’re ready to capitalise on new opportunities while mitigating possible risks.

Conclusion

In our view, the benefits of active strategic allocation in the MyFolio ranges are clear. By ensuring global diversification and avoiding excessive exposure to any single region, we provide a robust investment solution.

Our differentiation from market-weighted fund of fund strategies through active asset allocation positions us favourably in the market. As we navigate the complexities of the investment landscape, we remain committed to a philosophy that prioritises strategic foresight and adaptability.

Professional Adviser Awards 2025

Best Risk Targeted Range of Funds

MyFolio Index won the award for Best Risk Targeted Range of Funds at the Professional Adviser Awards 2025

This cost-efficient range invests mainly in passive funds managed by Aberdeen Investments and benefits from our dynamic strategic asset allocation approach.

More about MyFolio

MyFolio offers a spectrum of solutions with a range of investment styles and risk levels.

For more information about the MyFolio fund family, visit our website or speak to your local business development director.