The aim of the multi-asset strategy is to provide stable returns across different financial cycles using liquid investments. Pursuing stability equals to limiting your losses and controlling risks, so we put capital protection as priority and carefully manage potential falls.
To do this, we should pursue diversification in our portfolio through varied means – keeping in mind to avoid concentration when we allocate asset resources, adding other return sources, and proactively using cash. Cash flow is key in times of stress and is essential to maintaining control during downturns.
A multi-asset strategy can be tailored by addressing the risks of different economic cycles. As a matter of fact, change in the economic sphere is the only constant in investing. To most people, change creates unpredictability and therefore could jeopardise the steady performance of an investment goal. One of the ways we could navigate that is by carefully balancing exposure to withstand across a multitude of economic cycles. This means taking in account how assets react in terms of economic expansion, contraction, and sudden inflation scares. From there we can strategise the asset allocation to diversify the impact of each scenario in the portfolio.
In essence, the overall risk exposure of the portfolio can be adjusted based on market conditions and dynamics, with the constant objective of protecting capital. Adjusting risk to take advantage of market rebounds is a key strategy to seize opportunity during downturns.
The multi-asset approach is flexible, dynamic and agile. It is ultimately the most suitable strategy for investors who seek to gain long exposure to volatility across diverse markets so that the portfolio can be buffered from sudden market shocks.