Charles Stanley
Multi Asset Funds

A fund pools together money from many individuals and invests it. Each investor is issued units (sometimes referred to as shares), which represent a portion of the holdings of the fund and can be bought and sold on a daily basis.

OEIC stands for Open Ended Investment Company. It is a type of fund that invests in other companies and securities. Different types of investment strategies are used dependent upon the sector in which the OEIC is listed. OEICs have a single price directly linked to the value of the fund's underlying investments so ordinarily there is no difference between the price of buying and selling.

The funds blend a range of investments together to create a diversified portfolio. To do so they invest in a variety of shares and bonds identified from Charles Stanley’s proprietary equity and fixed income research, as well as funds. Any funds chosen are either ‘actively’ managed, that is to say they are run by a fund manager who decides which stocks to buy and sell in the portfolio, or ‘passively’ managed to replicate the performance of a particular index. At Charles Stanley we adopt a ‘best of breed’ approach and are do not have a set preference about which type of fund is better. Passive funds are generally cheaper and help keep costs down but, where we feel there are also opportunities for fund managers to add value from stock selection it can be desirable to use active funds.

Choosing any investment involves striking the right balance between risk and potential reward – as well as assessing financial capacity (affordability) to absorb potential losses. Typically, if the level of risk taken is low, the return should also be expected to be low, whereas if the level of risk is higher there is greater potential to make a better return over time – but there is also a greater potential for falls, especially in the shorter term.

The longer the timescale, the longer investments have for market fluctuations to even out. This is why many people turn to higher risk investments to help to potentially grow their capital in order to meet longer term objectives such as retirement. However, if the investment falls in price, investors need the financial capacity (affordability) to stay invested to give it the chance to recover rather than lock in any losses.

The main types of asset are equities, fixed interest securities (bonds) and property. Each has different characteristics but, unlike cash, they can fall as well as rise in value and you may not get back what you originally invested. History shows that over the long term (i.e. decades) the stock market (representing shares in individual companies) is typically the most volatile of these asset classes but has also provided the best overall returns; but mixing shares with other asset classes may lower short term volatility while still providing reasonable returns.

The objective of the MI Charles Stanley Monthly High Income Fund is to generate a high income with the potential for capital growth. To try and achieve this objective the fund must take some investment risk. The fund is expected to have a similar level of risk to Charles Stanley Multi Asset 2 Cautious Fund, which aims to deliver an overall investment return of inflation (as measured by the UK Consumer Prices Index) plus 1% a year, over a 5-year period.

The MI Charles Stanley Monthly High Income Fund is constrained in terms of the quantity of equities it can hold. The maximum is 35%, and the bias in favour of bonds over equities means it is aimed at investors with a medium-low risk outlook.

The fund is subject to market fluctuations and can fall in value as well as rise. If you are unsure about investing you should consider taking regulated financial advice.

Charles Stanley’s investment strategists meet every six weeks to consider the longer and medium term expected returns for a broad range of asset classes. In addition, every two weeks the team meets to determine shorter-term (3 month plus) tactical views, as well as to discuss individual investment ideas for each asset class identified by Charles Stanley’s analysts. From these regular discussions an optimal selection of investment is decided upon for each of the funds keeping to the relevant risk parameters. Ongoing analysis of each investment’s contribution to the performance of the fund is carried out to ensure each fund remains appropriately constructed for its objective.

Each fund is designed to meet a specific risk profile and has a targeted level of return. The funds often contain exposure to the same investment areas and similar holdings to one another. However, they adopt different levels of risk in order to try and achieve their investment objective. For instance, the fund designed to be cautious, Charles Stanley Multi Asset Cautious, aims to deliver an overall investment return of inflation (as measured by the UK Consumer Prices Index) plus 1% a year, over a 5-year period. For a greater possibility of achieving a higher target greater risk must be taken – typically accepting larger ups and downs in the value of the investment. Funds with higher targets typically include greater proportions of higher risk investments, notably equities.

Choosing any investment involves striking the right balance between risk and potential reward. Typically, if the level of risk taken is low, the return should also expected to be low, whereas if the level of risk is higher there is greater potential to make a better return over time – but you could also lose more money, especially in the shorter term. The longer the timescale, the longer investments have for market fluctuations to even out and, potentially, the more risk that can be taken. This is why many people turn to higher risk investments to help to potentially grow their capital in order to meet longer term objectives such as retirement. However, if the investment falls in price, investors need the nerve to stay invested to give themselves the chance to recover rather than lock in any losses. The main types of asset are equities, fixed interest securities (bonds) and property. Each has different characteristics but, unlike cash, they can fall as well as rise in value and you may not get back what you originally invested. History shows that over the long term (i.e. decades) the stock market (representing shares in individual companies) is typically the most volatile of theses asset classes but has also provided the best overall returns; but mixing shares with other asset class may lower short term volatility while still providing reasonable returns. If you are unsure about investing, we recommend that you take regulated financial advice.

The fund has an annual charge (known as the 'TOC' or 'Total Ongoing Charges') and the latest figure can be seen published against each fund. This represents the costs of running the fund including management and administration charges, transaction costs, incidental costs and the charges for any underlying funds held.

In addition, you pay a percentage 'platform' charge for holding the fund with Charles Stanley Direct. This is a maximum of 0.35% of the value of the fund held, and more details can be found on our features page.

For holders of 'income units' dividends will be paid quarterly on the last day of November, August, May and February. Please note that you must be holding the fund on the relevant record date in order to receive a dividend.

Simply log into an existing Charles Stanley Account or, for those not already customers, complete the registration process. The fund can be purchased in an ISA, Junior ISA, SIPP (pension) or Investment Account with Charles Stanley and money can be added to any of these accounts using a debit card. Once sufficient funds are in the relevant account, the account is logged in and the page is opened for the chosen units, use the 'buy' button. Alternatively, use the 'buy now' button on this page and follow the instructions from there.

Orders placed after 11:00 will be placed the next working day at the price for that day.

Our Helpdesk team is always happy to offer information on our range of accounts, as well as the fund, shares and other investment options available within them:

If you are already a client the best way to get in touch with the Helpdesk is via a Secure Message. Alternatively you can email us at [email protected]. Please do not send any sensitive information in an email, as it is not a secure medium of transmission. You can also call us on 0131 550 1234 from 7.30am to 5.00pm, Monday to Friday.