You have been redirected here from as we are merging our websites to provide you with a one-stop shop for all your investment research needs.

Get Started:To search for a security, type the name or ticker in the search box at the top of the page and select from the dropdown results.

Registered Hemscott users canlog in to Morningstarusing the same login details. Similarly, if you are a Hemscott Premium user, you now have a Morningstar Premium account which you can access using the same login details. contains data, news and research on shares and funds, unique commentary and independent Morningstar research on a broad range of investment products, and portfolio and asset allocation tools to help make better investing decisions.

Find out moreabout Morningstar and the website

Readour top tips for getting the most out of

Locateyour usual features on

Seea comprehensive list of features

Morningstar fund analyst Randal Goldsmith picks three multi-asset funds that deploy alternative assets with success in their portfolios

This article is part ofMorningstars Guide to Alternative Investing; providing everything you need to know about property, commodities, infrastructure and other diversifying assets.

Newton Real Return is a strong choice for investors seeking a target-return multiasset fund with an emphasis on capital protection.

Iain Stewart is among the most experienced multi-asset target-return managers in the United Kingdom, and he has run the fund since inception in April 2004. Before that, he managed traditional balanced and global-equity mandates based on Newtons theme-driven process and has around 30 years experience in this style of investing.Stewart leads the real-return team of eight, which includes four other portfolio managers and an experienced strategist. The team constructs the Newton Real Return portfolio based on the in-house thematic view of the world and macroeconomic outlook. These are the central pillars that are reflected in sector positioning and stock selection in the fund. Indeed, there is a high commonality in the portfolios holdings with other Newton funds.

The fund targets one-month pound sterling Libor rate plus 4% gross annualised over five years with volatility in between that of equities and bonds. To achieve this, the mandate has full allocation flexibility across assets that can be accessed via tradable securities. In particular, the portfolio is divided between return-seeking assets mainly equities, and stabilising assets mainly bonds and cash, and the manager increases the latter when the team is cautious. A protective derivatives overlay, composed of option strategies, is also applied to limit downside on the return-seeking core.

Despite the brevity of its track record, there is a lot to like at Invesco Perpetual Global Targeted Returns.

The fund was launched in September 2013 after its three portfolio managers joined Invesco Perpetual from Standard Life Investments where they were senior members of the multiasset investing team responsible for GARS. The investment approach is very similar, aiming for cash plus 5% during three-year rolling periods with less than half the volatility of equities. From inception to end February 2016 the fund returned an annualised 6.0% gross annualised, 4.5% after fees,.

The mandate is free of benchmark constraints and can make use of the full range of liquid assets. Instead of traditional asset allocation, the managers construct the portfolio from individual investment ideas. While these are guided by the multi-asset teams broad investment themes, implementation is mainly by sleeves of securities that mirror Invescos underlying managers and generally show high active bets, although typically applied with derivative strategies around them to capture the original investment idea more precisely and protect in periods of volatility. Interaction with Invescos other teams is also an important source of ideas for the multi-asset team.

Since more than half of the portfolio is normally invested in securities sleeves, the remainder is cash collateral for derivative strategies, the fund has meaningful potential to generate alpha from underlying security selection. Invesco Perpetuals multi-asset team of 10 includes the three managers, a risk manager, three analysts and three product specialists, who are dedicated entirely to this strategy.

The benchmark-index-unconstrained multi-strategy approach applied to SLIs Global Absolute Return Strategies Fund has not changed since it was first applied to the groups in-house defined-benefits pension fund in 2005 before launching as this retail fund in May 2008. Over time it has grown to be one of the largest investment funds in the UK 25.8 billion, while total assets under management in the strategy are worth around 50 billion and its success has attracted several imitators.

It is fair to ask whether the opportunity set for this daily dealing fund has reduced with AUM growth. At the outset, the strategy was designed to be scalable, making significant use of liquid derivatives to implement the teams ideas, and there does not appear to have been any slowdown in the overall rate of idea generation. However, it is noticeable that on the portfolio breakdown by return source, less has come from security selection since 2007, although macro sources have always been larger; so the opportunity set does appear to have reduced at the margin, and the idea flow is something to monitor.

The team responsible for this fund has grown commensurately with AUM and numbered more than 50 at May 2016. So it is more than adequately resourced. However, after poaching of key staff by competitors, few of those involved at the outset remain. Team head Guy Stern joined at the beginning of 2008. Most of the other senior portfolio managers joined the team in 2012. The risk and structuring group has been the stable element, and its head, Brian Fleming, is one of the few who have worked on GARS from the outset.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a persons sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Jupiters James Clunie thinks several stocks in his portfolio will fall in value – and he will…

Investors continue to seek shelter in absolute return funds during market uncertainty, but som…

Jupiter Absolute Return manager James Clunie says when markets are high it is time to short gl…

Absolute return funds have seen more inflows this year than any other sector. Emma Wall discus…

Morningstar analyst Randal Goldsmith suggests alternatives for those concerned about changes a…

Mining companies are operating in a challenging environment but could now be the time to top up o…

THE WEEK: Morningstar columnist Rodney Hobson provides two pieces of advice to George Osborne, an…

Businesses that have competitive advantages within their industry are good candidates for dividen…

Morningstar reveals the top 10 best performers over the last five years

Morningstar OBSR reveals the top funds for investors seeking exposure to European equities

Want to secure a sustainable source of income and returns? Look beneath the hood of your fund hol…

A yield curve inversion was once the reliable predictor of a US recession, but that is no longer …

World equity markets were softer ahead of the Easter break that is observed in many countries, wh…

Morningstars Karen Wallace discusses the importance of geniality and competence for advisers wit…

The latest news, views and analysis impacting professional investors, financial advisers and weal…

Randal Goldsmithis a Manager Research Analyst with Morningstar.

Morningstar is partly funded by advertising. This helps us pay for the great content, data and tools we provide to all investors. In order to make the advertising relevant to our users we need to understand whether you are an individual investor or financial professional.

I am able to make investment purchases in the United Kingdom

By clicking accept I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See Cookie Consent for more detail.

© Copyright 2019 Morningstar.All rights reserved.

The Morningstar Star Rating for Stocks is assigned based on an analysts estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar assigns star ratings based on an analysts estimate of a stocks fair value. Four components drive the Star Rating: (1) our assessment of the firms economic moat, (2) our estimate of the stocks fair value, (3) our uncertainty around that fair value estimate and (4) the current market price. This process culminates in a single-point star rating that is updated daily. A 5-star represents a belief that the stock is a good value at its current price; a 1-star stock isnt. If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail information about the Morningstar Star Rating for Stocks, please visithere

Quantitative Fair Value Estimate represents Morningstars estimate of the per share dollar amount that a companys equity is worth today. The Quantitative Fair Value Estimate is based on a statistical model derived from the Fair Value Estimate Morningstars equity analysts assign to companies which includes a financial forecast of the company. The Quantitative Fair Value Estimate is calculated daily. It is a projection/opinion and not a statement of fact. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail information about the Quantiative Fair Value Estimate, please visithere

Please continue to support Morningstar by adding us to your whitelist or disabling your ad blocker while visiting oursite.No ThanksIve disabled itAd blocker detected.

Unfortunately, we detect that your ad blocker is still running.To access our site, simply turn off your ad blocker and press Ive disabled it to continue.