Testing time for multi-asset as market volatility increases

Correlations at elevated levels

There are many commonalities between the countless multi-asset funds available for investors, writes Thomas Nehring at Nordea Asset Management.

The stated aim of most solutions is to provide equity-like returns at less than half the volatility of equities, alongside capital preservation over a three to five-year period. This is normally achieved by broad diversification. While the goals of these strategies can be quite similar, investment philosophies and processes can vary widely. Nordea launches multi-asset fund for UK market Ever since the crisis, there has largely been no opportunity - with the exception of 2011 - for investors to test the advertised diversification benefits and the differentiators between multi-asset ...