A delicate balance

In our research and analysis of multi-manager funds, we have found that there are broadly three different approaches to asset allocation - fixed asset allocation, relative return bias; active asset allocation, relative return bias; and active asset allocation, absolute return bias. These categorisations help to distinguish between those managers who believe it is not possible to add value consistently from active asset allocation and market timing, those who believe they are able to add value from taking strategic or tactical asset allocation positions within a relative return framework a...