A combination of low starting yields and powerful monetary headwinds made 2018 a difficult year for income-generating assets. But while many of the challenging features of the market persist, some opportunities have appeared. Cathal will review the environment for income-oriented investment and where he now sees a more attractive balance of risk and return.
There are various ways multi-asset portfolios can be managed. The spectrum ranges from a market timing approach to diversification of strategies and asset classes. Andrea will demonstrate that a diversification approach may be better suited to weathering uncertain and turbulent times, and she will illustrate how these approaches can be implemented to generate attractive returns in the long run.
Open architecture multi-asset funds are a great solution for investors. At UBP, the focus is on appropriately blending the best managers in order to meet the different targets of its investors. Is this approach still valid and efficient in 2019? We are in a world where active management is under significant pressure and where calling styles or size can prove insufficient to beat benchmark and peers. Thematic investing is on the rise. Cédric will look at how and if multi-asset investing can benefit from this thematic trend.
Nick will discuss three key issues when building a multi-asset solution for clients. Firstly, he will talk about the changing nature of correlations and the impact this has on portfolios. Secondly, he will discuss the perils of building portfolios using asset class labels as opposed to understanding the roles each instrument should have in the portfolio. Lastly, he will tackle the big fixed income question and how investors must think of fixed income differently to the way they have done historically.
With increasing risks in changing markets and the potential for inflation to erode the real value of all investments, building robust multi-asset funds requires more than traditional asset allocation. Clients want consistent outcomes coupled with performance, but how can you support their ambitions effectively without having to keep a constant eye on their investments in increasingly choppy financial waters?
With the continued industrialisation of the asset management industry, and when much of the alpha for clients is in the advice, how can asset managers differentiate themselves and add true value? Maybe it is more about insourcing, not outsourcing.