Identifying long-term embedded biases in multi-asset funds can take advisers and their clients some way towards understanding - and even tolerating - periods of apparent underperformance, writes Paul Ilott
Multi-asset funds are sometimes described as ‘all-weather' investment solutions that ought to be able to perform well under all market conditions - yet the reality can be rather different. One of the key reasons for this - other than perhaps when an investment team makes poor decisions - is that most multi-asset funds include embedded biases. These can include: structural biases in their strategy and implementation; any manager preferences regarding the types of instrument used; style and capitalisation size of equity holdings; currency profile; asset allocation policy; and the parameter...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
