Industry Voice: Go forth and diversify - building resilience in multi-asset funds

A robust multi-asset strategy depends on three factors: built-in ESG integration, strong portfolio construction and dynamic management

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Industry Voice: Go forth and diversify -  building resilience in multi-asset funds

Picture a forest. It's bursting with plant and animal life. There are towering tree-trunks overhead and tangled roots underfoot.

In the 18th century, European scientists tried to tame this natural abundance. They started clearing land to create artificial forests that could be cultivated cheaply and efficiently. They chose a single species of tree and planted the seeds in orderly rows. But the result was a disaster. The trees rapidly died, and the project had to be started again at enormous cost.1

So what went wrong? The scientists had overlooked what makes a forest resilient: its diversity. Thanks to its varied ecosystem, a wild forest contains in-built protections against disease. Lacking these natural defences, the artificial forests fell victim to parasites.

 

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J.C. Scott, 'Seeing like a state: How certain schemes to improve the human condition have failed', New Haven: Yale University Press, 1998

 

Important Information

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited ("Aviva Investors"). Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

The Aviva Investors Multi‐asset Fund range comprises the Aviva Investors Multi‐ asset Fund I ("MAF I"), the Aviva Investors Multi‐asset Fund II ("MAF II"), the Aviva Investors Multi‐asset Fund III ("MAF III"), the Aviva Investors Multi‐asset Fund IV ("MAF IV") and the Aviva Investors Multi‐asset Fund V ("MAF V") (together the "Funds").

The Funds are sub‐funds of the Aviva Investors Portfolio Funds ICVC. For further information please read the latest Key Investor Information Document and Supplementary Information Document. The Prospectus and the annual and interim reports are also available on request. Copies in English can be obtained free of charge from Aviva Investors UK Fund Services Limited, St Helen's, 1 Undershaft, London EC3P 3DQ. You can also download copies from our website.

Issued by Aviva Investors UK Fund Services Limited. Registered in England No 1973412. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119310. Registered address: St. Helen's, 1 Undershaft, London, EC3P 3DQ. An Aviva company. 137850 - 13/10/2021

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