Gosling's Grouse: For better, for worse

GOSLING'S GROUSE

Is multi-asset investing all about diversification, or conviction? If you are the regulator, you would see these funds as a potential source of diversification, and regulators think diversification is good.

But one of the oldest jokes in the industry is that in the wrong hands diversification is diworsifcation. Sadly, over the years, some of the ‘wrong hands’ have been those of the managers running multi-asset or multi-manager solutions. But now it feels like the multi-asset market is coming of age and is offering investors, and advisers, proper investment solutions. When I say solutions, I do not mean diversification for the sake of it, but a proper return. The difference between conviction and diversification came up recently in a discussion with three of the managers of Investec’s exc...