Constructing an investment portfolio has never been more difficult, with equities becoming increasingly volatile and traditionally safer investments like government bonds paying a low or negative return.
One way forward is to invest in a broader range of assets via a portfolio which quickly adapts to market conditions.
Benefits of multi asset investing
Investing via a multi asset approach offers a number of potential benefits:
Invest in a wide range of asset classes
Designed for specific needs
Easy to understand
Dynamic Asset Allocation
Our multi asset solutions
We offer simple and cost-effective investment solutions which allocate to a wide range of assets including equities, fixed income and alternatives. We believe they allow investors to capture the best opportunities from the broadest investment universe, but without being too concentrated or taking on too much risk in any one asset class.
Our multi asset solutions have clear objectives – they are designed to meet specific investor needs. They might, for example, aim to produce equity-like returns with less risk than a portfolio of just global equities, or alternatively act as a low-volatility replacement for bonds.
What are the risks?
We believe that multi asset strategies offer great potential for investors. There are risks however, and it’s therefore important to find an experienced manager to manage these.
Investments in fixed income may be subject to the default/credit risk of issuers, interest rate risk as bond prices move inversely to changes in interest rates, and liquidity risk. Investing in higher-yielding or non-investment grade bonds might mean the risk of the issuer defaulting on the capital repayment is higher.
These strategies could also invest in emerging markets, where investments can be higher risk and more volatile, or denominated in a foreign currency meaning a change in exchange rates could affect their value. They may also use derivatives which carry similar risks, or use leverage.
Investments are subject to the risk of material losses resulting from human error, systems failures or the incorrect valuation of the underlying securities.
Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.
We have been providing multi asset solutions since 2017, and have built a well-resourced global investment platform to support this.
EQR Strategy Unit
Our multi asset team also houses the EQR Strategy Team, which is our in-house investment team responsible for providing asset allocation guidance across stocks, bonds, cash and commodities to our investment teams and our clients.