Rethinking multi-asset investing

Discover the key points from Robert’s interview in this short article.

The MyFolio philosophy

In today’s complex investment landscape, delivering consistent outcomes requires more than simply tracking market performance. It calls for a structured approach built on risk management, diversification and long-term discipline. This philosophy sits at the core of the MyFolio range, a multi-asset platform managing over £11 billion (source: Aberdeen, as at 31 March 2026), and designed to meet a broad spectrum of investor needs. 

The MyFolio offering reflects evolving investor expectations. Clients now demand greater flexibility, transparency and choice in how their portfolios are constructed. As a result, the range includes the mainly passive MyFolio Index, the actively managed MyFolio Multi-Manager and a hybrid approach that blends both in MyFolio Core. Alongside these sits a suite of ESG (environmental, social and governance) portfolios, reflecting the growing importance of sustainability in long-term investment decisions. Together, these options help advisers to align portfolios with client objectives, balancing performance, cost and values.

A clear framework for risk

At the heart of the investment approach is an emphasis on volatility management. Each portfolio is aligned with one of five defined risk profiles, targeting a specific level of volatility. This provides a clear framework for ensuring that portfolio behaviour matches the expectations and risk tolerance of investors. While no single measure can fully define risk, volatility remains a practical and widely used proxy when applied thoughtfully. It is assessed over short and long-term horizons to capture different market dynamics and trends. This disciplined approach supports more predictable outcomes, even in challenging market environments.

Diversification beyond the basics

Diversification remains central to portfolio construction, but its application has become more sophisticated. MyFolio portfolios draw on around 20 asset classes combining defensive and growth exposures. Alongside traditional equities and government bonds, allocations include infrastructure, global real estate, emerging market debt and high-yield credit. 

Within fixed income, the approach is deliberately granular, distinguishing between duration, maturity, credit exposure and geographic factors. This reflects a shift away from simple asset allocation models toward more nuanced portfolio construction. In a world where asset class correlations can change, a broader and more flexible approach to diversification is essential.

Strategic allocation as the main driver

Long-term portfolio performance is primarily driven by strategic asset allocation. This underpins the investment process and is the main driver of returns. Portfolios are constructed using forward-looking assumptions about returns and volatility over a 10-year horizon. These inputs are used to build diversified portfolios aimed at maximising expected returns for a given level of risk. While the process is analytical, it is not purely mechanical. Judgement and experience play a key role, particularly during periods of uncertainty. The framework is reviewed twice a year to reflect changing market conditions. However, discipline remains critical. Periods of market stress can create pressure to act, but we believe maintaining a long-term perspective is often the most effective approach.

Addressing concentration risk

A key challenge in the current market is the concentration of global equities, particularly in the US. With a large share of global indices allocated to US markets, and a significant portion driven by a small number of companies, diversification becomes more complex, requiring a careful reassessment of exposures. We moderate allocations where valuations appear stretched, and increase focus on regions such as Asia, Japan and emerging markets, where long-term return potential may be more attractive. Diversification within US exposure is also important. A mix of market-cap-weighted indices, equal-weight strategies and selective active management can help reduce concentration risk while maintaining access to growth opportunities.

A balanced investment approach

No single investment style consistently outperforms. Passive strategies offer cost-efficient market exposure, while active management can add value in less efficient regions. A blended approach allows portfolios to benefit from both. At the same time, ESG considerations are increasingly relevant. Structural trends such as energy transition and geopolitical change are shaping long-term returns, reinforcing the importance of integrating sustainability into portfolio construction.

A framework for consistency

Ultimately, the goal is not to predict short-term market movements, but to build portfolios capable of delivering consistent outcomes over time. Combining disciplined risk management, strategic allocation and broad diversification helps portfolios navigate uncertainty. As market dynamics evolve, this structured approach aims to provide investors with clarity, resilience and confidence for the long term.

More about MyFolio

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