Investor Economics Insight—July 2022

Fund Wraps 3.0: Asset Allocators Incorporate New Flavours

For more than two decades, wealth managers have been adopting asset allocation solutions at a rapid pace. The spectrum of asset allocators has expanded over time, encompassing discretionary managed accounts and productized solutions such as funds of funds (FoFs)—the subject matter of this report. Over time, innovation has resulted in waves of product development that expanded the asset allocation shelves with options targeting various client segments, demographic groups, and distributor practices.

The current issue of Insight looks at the asset allocation products introduced mainly in the last three years and the underlying wave of innovation in investment options that is becoming available through FoFs. The Trendlines article reviews recent growth trends in liquid alternatives in the United States and Canada.