Multi-Asset Investing

Multi-Asset Investing

Multi-Asset

Adding value to clients’ portfolios

Why Multi Asset?

We believe it’s possible to potentially achieve better risk-adjusted returns from multi-asset investing. Over the longer term all asset classes are driven by economic fundamentals. By identifying inefficiencies in valuations between markets, value can be added to clients' portfolios through dynamic allocations to different assets and markets.

Our approach

Our multi-asset product is tuned to the individual needs of institutional investors.

We offer multi-asset investing through either.

• A pooled vehicle

or

• Individual, client-specific portfolios

We believe absolute returns are more important over the longer term than those relative to a benchmark or index. We use the risk-free rate* as a starting point to measure the attractiveness of different asset classes, and we are comfortable taking decisive positions away from a benchmark.

Our multi-asset team

The team manages individual components of the portfolio with our relevant investment teams, as well as coordinating investment strategies.
They also offer advice on tactical and strategic asset allocation. This can be through the physical trading of the underlying asset classes or through highly specialised pooled asset allocation of funds, depending on clients’ requirements.
* Typically the return on cash deposits or short term government bonds.

Investment  Process

Multi-asset investment process

Our investment process is designed to identify what we believe is the best possible asset allocation to meet our clients’ investment aims. This means an appropriate combination of asset types and investment approaches.
We use in-house and third party managers to choose investments to include in multi-asset portfolios.

How our investment process works

We look for relative value as well as both non-correlated assets and non-correlated investment approaches when selecting investments for multi-asset portfolios. Where possible we use in-house capabilities including:

• Fixed income (including credit)
• Interest rates
• Currency
• Equities (global/regional)
• Emerging markets
• Property
• Private equity

We also look to combine different investment approaches including:

• Active/passive
• Liability matching
• Absolute return strategies
• Tactical asset allocation products
• Use of derivatives

We use third party managers where appropriate in-house investments are not available and include hedge funds, private equity and property. We carry out comprehensive due diligence and look for the following characteristics before inclusion in multi-asset portfolios:

• It must be a core offering
• Quality and stability of the investment team
• Clear, transparent and repeatable investment process
• Strong performance track record*

This ensures that third party manager investment teams and approaches are consistent with the broader investment strategy of client portfolios.
* Past performance does not guarantee of future results