Investors, fund managers and advisers can draw a few lessons from multi-asset funds' swift fall and partial redemption, writes Darius McDermott
The great lure of multi-asset is the ability to diversify your investment portfolio and help mitigate losses during periods of economic uncertainty. But while it offers a strong degree of protection, it is not a sure thing (nothing you invest in is) – we saw this in 2022 when significant market stress saw all asset classes become correlated to some degree. Unfortunately, poor sentiment can stick – and since 2022 the murmurs have grown that the traditional 60/40 model is now obsolete as an investment strategy, despite a better return in 2023. We think – with some tweaks – the strategy st...
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