Risk warning

The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.

March 2019 saw the launch of our MyFolio Index fund range, a lower-cost solution investing mainly in abrdn passive funds. 

The introduction of MyFolio Index brought the number of solutions in our pioneering risk-targeted MyFolio multi-asset suite up to four, and was later followed by the launch of two sustainable fund ranges.

Are you an adviser looking for a long-term outsourced investment solution with consistently low fees for your clients? Read on to find out why the MyFolio Index range continues to be so popular after five years in the market.

Meeting the cost confidence challenge

Back in 2018, with MyFolio Index still in the design workshop, our challenge was to deliver risk-rated solutions to clients at a low fee, ensuring cost consistency across various risk profiles.  

Provide clients with confidence that their costs will remain stable

We wanted the new range to harness the tried-and-tested MyFolio investment process. Our existing MyFolio Market range therefore provided a solid starting point for MyFolio Index, albeit with some key differences. We opted not to employ a tactical overlay with the new product, and we also excluded UK physical property.

We also knew our well-established abrdn passive and quantitative investment capabilities would allow us to manage most passive strategies internally, significantly reducing costs. Our goal was clear: provide clients with confidence that their costs will remain stable. 

An active approach to passive management

While the MyFolio team strongly believes in the merits of active management, we also recognise the importance of cost efficiency.

As portfolio managers for MyFolio Index, we’re advocates for leveraging diversification benefits that come from the strategic asset allocation without incurring active management fees. Although the MyFolio Index range predominantly uses passive underlying components, it is by no means passively managed.

Strategic asset allocation

As with all MyFolio fund ranges, MyFolio Index portfolios undergo regular rebalancing by our dedicated trade monitoring and implementation team to maintain their desired risk levels. Additionally, the strategic asset allocation is reviewed periodically, drawing on abrdn’s investment expertise.  

Help clients navigate towards their future savings goals

By focusing on cost-effectiveness and adapting to market dynamics, we construct long-term, diversified portfolios and help clients navigate towards their future savings goals.

The strategic asset allocation is reviewed every six months, and is deliberately slow-moving in nature, mitigating the impact of daily market volatility. By avoiding short-term news and views, we prevent ‘bad investing behaviour’ and foster disciplined wealth accumulation.

Investing for the future

Our approach emphasises long-term outcomes and minimises the impact of excessive trading and related costs. This means clients can enjoy a smoother investment journey whilst reducing the risk of unexpected surprises. Lower costs can potentially enhance the returns available when the time comes to enjoy the benefits.

Staying agile

Ever-changing markets mean we’re always on the lookout for new opportunities offering genuine diversification benefits. Before the year is out, we look forward to introducing an additional asset class to the MyFolio Index range, which will enhance portfolio balance.

Celebrating milestones

Markets have been particularly challenging for investors recently, with factors including inflation, economic slowdown and conflict affecting nearly all asset classes. Correlation also increased, reducing the benefits of diversification.

After five years of MyFolio Index, we are humbled and thrilled to see the number of investors who have taken the opportunity to access the expertise of the MyFolio range in this low-cost way, with assets under management recently crossing the £3 billion mark*. Visit our fund centre to see how MyFolio Index has performed.

The MyFolio DNA

Today the six distinct MyFolio ranges offer a diverse set of multi-asset solutions to meet client needs. A common DNA and investment process underpins everything we do. 

Designed to provide access to a broad range of asset classes, MyFolio funds are dynamically managed with long-term investment horizons.  In a market filled with countless investing options, it’s challenging to predict short-term winners.  

We strongly believe diversification is essential in order to help you and your clients achieve future success. 

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

  1. *Source: abrdn. MyFolio Index assets as at 29 February 2024