Multi-asset strategies are targeted to meet a range of investment objectives which reflect our diverse client base, including pension plans, insurance companies and sovereign entities.
View full list of multi-asset strategies.
Our portfolios aim to generate smoother return streams by diversifying across markets, asset classes, geographies and investment styles and by managing strict risk budgets.
Our multi-asset range of strategies covers: traditional balanced, risk targeted, flexible and income-oriented portfolios, specialised techniques (style factor) and portfolio protection.
Our multi-asset investment philosophy is based on the belief that:
- Markets are inherently inefficient over the short to medium term
- Asset prices exhibit excess volatility, relative to fundamentals, often leading to market mispricing
- However, markets can be expected to revert to a measure of 'fundamental value' over the long term
- We believe active asset allocation based on valuation can exploit this market over-reaction and mean reversion
- Asset allocation is the key driver of portfolio return and must be dynamic
Following on from this philosophy, we aim to develop:
- Robust valuation metrics to review the long term return potential on all available asset classes, on an ongoing basis
- An investment strategy that is adjusted accordingly, shifting portfolio allocations toward asset classes with the best prospective risk-adjusted returns
- Fulfilment that aims to capture the beta characteristics of the targeted asset classes on a cost efficient basis
To achieve this we:
- Use asset valuation tools in a systematic way to project future asset class returns
- Construct a dynamic asset allocation policy to exploit shifts in prospective returns across assets
- Employ a robust optimisation process, enhanced by considered qualitative judgement, and a disciplined rebalancing of portfolios
- Carefully manage portfolio risk as well as return potential
- Choose the most efficient instrument for execution from a risk, return and cost perspective
The investment process for our core multi-asset solutions consists of three key stages:
- Strategic Asset Allocation (SAA) – setting the portfolio's reference allocation
- Tactical Asset Allocation (TAA) – risk aware active positions against the portfolio's SAA, reviewed frequently to ensure portfolio dynamism
- Portfolio Construction – implementation of the portfolio's TAA
- We leverage the insights of a wide range of global teams: macro economists, equity and fixed income investment teams, research specialists that focus on portfolio design and analytics, and product specialists in London, Paris, Toronto and Hong Kong
- Our strategies benefit from years of experience in advising clients on investment guidelines, benchmarks and risk tolerance criteria, together with an extensive knowledge of local regulation and industry trends