The two firms said the product aims to capitalise on the “exciting opportunity set” in income-producing assets.

T Rowe Price’s head of multi-asset solutions Yoram Lustig and multi-asset solutions strategist Michael Walsh have been named investment advisers for the portfolio.

The portfolio adds to the existing range of income products available to Mattioli Woods clients, which includes Custodian Reit, and the £72.8m Property Securities fund.

See also: ’60/40 portfolio not as effective as it once was’ says T Rowe Price head of multi-asset solutions

Dean Cheeseman, Mattioli Woods managing director of client investment solutions, said: “We selected T Rowe Price for its collaborative approach and focus on delivering great client outcomes, something which is increasingly important in the evolving savings and retirement market.

“From its US heritage, T Rowe Price has extensive experience in multi-asset and retirement solutions. Through our partnership, our clients will benefit from the combined experience of Mattioli Woods in financial advice and the global asset management experience of T. Rowe Price.”

Nat Terry, head of UK and Ireland at T Rowe Price, called the move an “important step” for the US firm as it seeks to build out its UK presence.

Mattioli Woods currently manages £15bn in assets under advice and administration.

This article was written for our sister title Portfolio Adviser

Speaking in an interview on PA+, Lustig said while reports of the method of investing 60% of a portfolio in equities and 40% in bonds to diversify as being dead are exaggerated, he conceded the construct is not as effective as it once was.

“I think it needs to be modernised,” he said. “If we look at the 40% which in the past was traditionally being held in UK gilts, it now makes sense for investors to diversify their diversifiers.”

For example he said to diversify equity risk, instead of holding gilts investors should look more to global bonds and then hedging the currency back to sterling or other safe haven currencies.

However while arguing attention should be paid to alternative assets with defensive characteristics, Lustig noted which alternatives to use depends on the type of investor involved.

“Large institutional and sophisticated investors with a very long-term investor horizon should include some alternatives to add more sources of return and diversify some of the risks,” he said.

“However more retail and intermediary investors may appreciate more liquidity and simplicity because some of the alternative assets [such as property and private equity] are illiquid, more expensive and complicated to govern. So while alternatives have a role to play in portfolios, it really does depend on the type of investor.”

Indeed depending on the type of investor, Lustig said 60/40 is becoming a less relevant catch all, with many preferring a more defensive 20/80 split, others 50/50 and more growth investors wanting an 80/20 mix.

Looking at the future of multi-asset investing, Lustig said the best case for the industry is that it continues evolving, not only focusing on investment needs but also on trying to make the world a better place through ESG and impact investing.

“The worst case scenario is that we have a stagnation in the development of multi-asset portfolios and some of them remain too complicated, varied across different investments but without really giving any diversification,” he said.

To see the full interview click here: Asset Allocators with Yoram Lustig

But while most risk assets have managed to deliver positive real returns so far this year, the broader backdrop remains challenging – as the full impact of central bank efforts to clamp down on inflationary pressures has yet to be felt.

In the face of ongoing uncertainty, six investors outline their thoughts on markets for the final quarter of the year and beyond.

Not a time for major calls

By Niall O’Sullivan, chief investment officer, multi-asset strategies, EMEA at Neuberger Berman

We have greeted this year’s equity market rally with some trepidation. While strategic asset allocations have done well, we have been cautious as equity markets appeared to diverge from economic fundamentals.

Initially, each month of divergence increased our concern about market levels, especially as investors were being paid to be patient by cash and short-term bond yields. Eventually, however, the balance between tactics and strategy made us recognise the near-term momentum was too strong to fight against, even as we held onto our medium-term outlook. By mid-year, we were shifting to neutral. But a ‘neutral’ view does not mean a portfolio has to be static.

What can be done to eke out incremental excess return opportunities? One place to look is within, rather than among, asset classes. For example, in equities, regional tilts can be explored. Japanese equities still appear attractively valued in a policy environment that remains very accommodative next to other developed markets, even after the Bank of Japan’s recent adjustments to yield-curve control.

No free lunch from here

By Andrew Lake, head of fixed income at Mirabaud Asset Management

The big danger right now is that inflation does not come down. Given people are not losing their jobs and consumers continue to spend, we must at least consider the scenario that inflation does not fall as quickly as expected.

One consequence of this would be the Fed continues to hike rates and a potential policy error occurs as they overtighten into a market that is already weakening – triggering a recession. The Bank of England could be going this way.

Overall, it is a tough environment and views are quickly flip-flopping between bull and bear. Right now, the government bond bears seem to be winning with forecasts of a ‘Goldilocks’ scenario and no recession. But the flip side of that is higher treasuries, which would cap equity market performance, so sadly there is no free lunch for investors with either scenario.

Expect greater market breadth

By Scott Berg, portfolio manager of the T Rowe Price Global Growth Equity strategy

Equity markets have performed well this year, but much of the gains have been concentrated in US mega-cap technology stocks.

In our view, rapid technological change, Covid, and geopolitical conflict are creating the setup for a bumpy ride going forward, where grinding out returns will be important. Markets will increasingly reward those companies that can withstand an economic decline and maintain or expand profit margins.

With the era of low interest rates, low taxes, low wage growth, cheap commodity prices, easy technological gains, and deflationary globalisation now passed, this will have implications for profit margins for all companies. While the first eight months in 2023 have somewhat hidden this theme, as mega‑cap technology companies have exerted a strong influence on equity returns, this narrowness will inevitably fade to create greater market breadth.

Bonds again present value

By Phil Collins, chief investment officer, multi-asset at Sarasin & Partners

Rather than looking to China, global equity markets have fixated on the hype around generative artificial intelligence (AI). This has bid up a small number of technology companies into what could be a mini asset bubble. Just seven stocks account for the lion’s share of the rise in the S&P 500 this year.

For the first time in many years, we find that bonds present attractive value. Corporate bond spreads are attractive relative to historical levels, while government bonds are close to fair value in the US, Europe and UK. Higher yields, resilient company earnings and strong balance sheets make good-quality corporate bonds a viable alternative to equities, and we have been adding long-term income generators to the portfolios.

The higher returns now available on bonds prompt a rethink of the pros and cons of holding alternatives. As well as offering competitive returns, carefully selected bonds can also provide better liquidity and lower risk profiles than some alternative investments. Even cash is coming into its own once again, with low risk returns able to compete with absolute return strategies.

The golden trust opportunity

By Nick Greenwood, manager of MIGO Opportunities plc

The investment trust sector has recently witnessed a perfect storm in recent weeks, as a number of factors coincided to trigger a rapid widening of discounts across the entire space. We have reached the point where many commentators are suggesting recent events have sounded the death knell for investment trusts. This is a call that we have heard many times over the decades, but the sector continues to evolve.

A fundamental reason why the trust sector should prosper is that asset classes such as property, private equity and shipping cannot operate within an open-ended fund. It would be impossible to sell a fraction of an office block or a containership within twenty-four hours to meet a client sale.

We firmly believe we will look back at the summer of 2023 and reflect that it represented a golden opportunity to buy discounted investment trusts.

Boon for yield-curve strategies

By Robert Tipp, chief investment strategist and head of global bonds at PGIM Fixed Income

Interest rates have just migrated from a decade of ultra-low levels back to what may be a sustained period back ‘home’ in their long-term 3-5% range. The renewed higher level of yields should easily support investment grade returns in the mid-single digits, with high-single-digit returns likely on the higher-risk sectors – such as high yield corporates and hard currency emerging market debt.

Rather than a harbinger of recession, the inverted yields of many DM markets suggest investors’ collective psyche remains anchored in the low-rate era, convinced that rates will be lower in the near future. Just as investors never caught up with the 40-year secular decline in rates, the inverted curve could be with us for some time, leaving a boon for yield-curve strategies.

Furthermore, with the vast majority of rate hikes behind us, market volatility is set to fall. A re-emergence of the ‘search for yield’ is likely to follow, providing a tailwind for spread product and further boosting returns.

For more insight on UK wealth management, please click on www.portfolio-adviser.com

The provider of international life assurance-based wealth solutions has hired Marie Salvo as head of sales for France.

She was most recently country manager of Luxembourg for One Life.

T Rowe Price Group

The asset manager announced that Robert Higginbotham, head of global distribution and global product, plans to retire at the end of 2023 after 11 years with the firm and 33 years in the industry.

Higginbotham, who also serves as chief executive and chair of T Rowe Price International, will be succeeded by management committee member Dee Sawyer.

Effective 1 January 2024, Sawyer will be named the head of global distribution, leading the teams responsible for sales, marketing, and client service globally across all distribution channels and will assume Higginbotham’s responsibilities on the firm’s subcommittees.

Scott Keller, head of Americas, Apac, and Emea distribution, will serve as the chief executive and chair of T Rowe Price International, and will report to Sawyer, while continuing in his current role.

Rothschild & Co

Matthew James has been named as a managing director and head of marketing and business development in the firm’s UK wealth management business.

Most recently, James was director of marketing and business development at Charles Russell Speechlys.

M&G Investments

Richard Godfrey is joining the business as chief operating officer for asset management, subject to regulatory approval, on 31 July 2023.

He joins M&G from HSBC, where his most recent role has been global co-head of the securities services and securities financing businesses.

Columbia Threadneedle Investments

Nick Ring, the chief executive of Emea at the asset manager, will retire at the end of 2023 following a 34-year career in the investment industry.

As a result, David Logan, global chief operating officer at Columbia Threadneedle, will be appointed to the new role of head of Emea and global business operations, subject to regulatory approval.

Collyer Bristow

The law firm has promoted Charles Avens and Charlie Fowler to partner, both in its private wealth department.

Avens joined the firm last year as head of immigration and will continue in this capacity as a partner.

Fowler has been made up to partner in the tax and estate planning and immigration teams.

SimplyBiz

The adviser support services firm has appointed Kelly Phillips to the position of business development quality manager.

The newly created role will see Phillips work closely with SimplyBiz member firms to help create protection opportunities and support advisers in meeting the expectations of Consumer Duty, with a clear focus on business quality to drive better outcomes for the end consumer.

Phillips was previously at AIG and Legal & General.

Capital Financial Markets

Peter Land has joined the firm as an investment manager.

He joins from Walker Crips, where he spent the past seven years. He has 40 years experience in private client and family office management and advice, having previously been a divisional director at Brewin Dolphin.

Guy Opperman and Tom Purglove have both been appointed as minister of state in the Department for Work and Pensions.

Opperman rejoins the department after he quit as pensions minister.

Laura Trott has been named as parliamentary under secretary of state in the DWP.

Alex Burghart has been moved to parliamentary under secretary of state for the Cabinet Office.

He was previously parliamentary under secretary of state for the Department for Work and Pensions from 20 September 2022 to 27 October 2022.

The roles of the MPs appointed have not been announced.

Transamerica Life (Bermuda)

The insurer has hired Andy Wong as chief operating and transformation officer based in Hong Kong.

Wong previously worked in AIA Hong Kong, ING, FT Life, and most recently at Tai Kang Life.

T Rowe Price

Elsie Chan has been appointed as head of Asia Pacific distribution to head up the firm’s distribution teams based in Australia, Japan, Hong Kong and Singapore.

Chan joined T Rowe Price in Hong Kong in 2015 to build out the financial intermediaries business in Asia and took on an expanded role as head of Asia ex-Japan distribution in 2018 to oversee the institutional and intermediary businesses in the region.

She takes up the reins from Nick Trueman, who has become head of Europe, Middle East and Africa distribution.

Trueman joined T Rowe Price in 2007.

You Asset Management

The discretionary fund manager has hired Nick Heath as client relationship manager.

He brings over 20 years’ experience of supporting financial planners and their businesses, having previously held senior roles at Capital Asset Management, 7IM and Societe Generale.

Also joining the firm is Chris Ayton as a fund manager, Ayton, alongside Cormac Nevin and Shane Balkham, will manage You’s range of Model Portfolios and Multi-Asset Blend Funds.

Additionally, Kira Parker joins as investment administration manager. Most recently, Parker was working at Liontrust Asset Management.

Schroders Personal Wealth

The advice firm has appointed Makala Green as a personal wealth adviser as it continues to grow its presence across the regions.

She joins from St James Place Wealth Management, where she was the director of Green Wealth Planning Ltd for seven years.

In addition, Schroders Personal Wealth have made a number of hires across the north west and north wales.

Elaine Porter, Paul Innocent, Neil Whiteside and Michael Hart all join as a personal wealth advisers.

Porter will cover Chester and Wirral and previously held roles at Prudential, NatWest and Nationwide. Innocent will cover Blackpool and Flyde Coast after previous roles roles at Axa, Wesleyan and Wealth at Work.

Whiteside, who joins from Wesleyan Financial Planning, will cover Liverpool. Prior to working at Wesleyan, he held a number of roles at Lloyds Bank. Hart will be covering north Wales. He joins from HSBC, where he has spent the last eight years dealing with HNW clients.

Copia Capital Management

The discretionary fund manager has named Matthew Jones as sales manager for Wales and the south west.

He had previous roles at Legal and General, Scottish Life and most recently Quilter, where he has spent the last 18 years developing relationships with IFAs.

Federation of European IFAs (Feifa)

The professional body has reorganised its board with David Vacani becoming chairman.

Vacani is the owner and managing director of Beacon Global Wealth. He was previously director of Feifa.

All existing board members were re-elected. The existing chairman, John Westwood, had decided to stand down from the role but remains on the board.

Chris Marriott remains as vice-chairman and treasurer, and Jason O’Connell as secretary.

Paul Stanfield has also been retained as chief executive.

Financial Planning Standards Board

The standards-setting body for the global financial planning profession has named Dante De Gori as chief executive, effective 1 January 2023.

The appointment follows the announcement in May 2022 that Noel Maye would step down as chief executive at the end of December 2022.

De Gori previously served as chief executive of the Financial Planning Association of Australia (FPA) – the financial planning professional body in Australia.