Does multi-asset do exactly what it says on the tin?

Diversification has long been touted as the holy grail of investing. This maxim is especially true in today’s volatile markets where investors are, above all, looking to reduce risk and smooth volatility via well-diversified portfolios. Multi-asset funds promise to do exactly that. In combining an assortment of uncorrelated asset types, which behave differently under certain market conditions, the idea is that, if one asset plummets, another will rise – much like financial weighing scales. Advisers have been keen to tap into the diversification spoils on offer. According to Skandia’s ...