Why multi-asset managers are turning to 'liquid alternative' strategies

Managers turning to 'hedge fund-like' liquid alternative strategies

clock • 4 min read

Multi-asset managers reveal how they are turning to 'hedge fund-like' liquid alternative strategies in 2016, in a bid to protect portfolios and generate returns across the market cycle.

Higher correlations across traditional asset classes are continuing to drive demand for alternatives among multi-asset managers, particularly in the aftermath of the sell-off seen in global equities earlier this year. Morningstar research reveals the correlation between sterling corporate bonds and global large-cap equities was in the highest of three quintiles at 0.77 at the end of last year, while none of its asset class categories were negatively correlated. But while traditionally investors have focused on alternatives like infrastructure, property, commodities and some types of h...

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