What is Multi-Asset investing?

In simplest terms, multi-asset investing is the process of gaining exposure to a globally diverse mix of asset classes and styles in a single investment portfolio. Multi-asset investing may combine traditional securities, such as equities and bonds, with non-traditional approaches, such as alternative investments.

The term, multi-asset, is relatively new to most companies. So the definitions vary widely. It is vital that investors carefully compare offerings. Some firms define multi-asset simply by the number of asset classes in a portfolio. Others by the types of asset classes, saying that alternatives, such as private equity and hedge funds, are a must. Still others might align multi-asset with fund-of-fund portfolios, or combinations of short-term and long-term approaches. Of course, all types of investments have their own inherent risks and risk levels of asset classes vary. Multi-asset investing does not assure a profit or protect against loss.

WHAT MAKES RUSSELL'S MULTI-ASSET SOLUTIONS DIFFERENT?

We focus on the real goals of investors.

We recognise that the money we manage represents the hard work and savings of real people. What is it you're trying to accomplish? Are you an institutional investor trying to improve the funded status of your plan? Or are you an investor working toward a secure retirement with the personalised advice of an advisor. Or perhaps you're a financial adviser managing the overall financial security of a client. Once we understand your desired outcome, we can provide you with a portfolio built with the appropriate contents and strategies. But we start with your real goals in mind.

Our evidence-driven approach.

We believe smart decisions are grounded in timely research and insights. So we inspect and analyse key factors affecting your desired outcomes, and seek to create and adjust strategies to help you reach them. Of course, diversification and multi-asset investing do not assure a profit or protect against loss.

A unique combination of core capabilities.

To create multi-asset solutions, we draw from capabilities created and integrated in response to investors’ needs. We are one of only a few firms that offer capital markets insights, manager research, portfolio construction, portfolio implementation and Indexes.

We research markets globally. We research managers, seeking to identify leading performers. We have decades of experience successfully building and managing portfolios. Our implementation efficiency is anchored by a robust trading desk. Our precise views of market segments and performance are enhanced by our experience in building equity indexes. When it comes to our multi-asset solutions, all these capabilities are brought to bear on behalf of our clients. And they're all aimed precisely at helping these clients reach their outcomes.

An open-architecture approach:

We believe an effective multi-asset portfolio is built from the best global strategies. But no firm can look an investor in the eye and honestly say, "I'm good at everything." So we don't try to do it all in-house. Instead, we put our efforts into researching independent money managers from around the world – with the goal of finding top performers – then combining those manager products into the strategies within our portfolios.

Efficient portfolio management.

Multi-asset portfolios are complicated by their very nature. More moving parts requires greater expertise in the trading activities of portfolio management. So Russell's robust, respected trading desk focuses on keeping every penny of your portfolio hard at work.

WHY SHOULD INVESTORS CARE ABOUT MULTI-ASSET INVESTING?

Do you care more about this month's portfolio performance report or about successfully reaching your desired investment goal?

If you are a goal-oriented investor, then we think you should consider multi-asset investing. As the name implies, multi-asset looks at your portfolio from multiple angles. Instead of what might be a shortsighted focus on this quarter's performance, a multi-asset portfolio also brings in the dimensions of diversification, market cycles, risk factors, and complementary strategies. These combinations are not always designed to provide short-term numbers. Instead, their aim is to provide as much certainty as possible in achieving your desired outcome.

Think about how complex and how global markets are. Think about how much harder it is to outperform mature sectors of the market. And think about the impact events such as 2008 had on portfolios with a short-term focus.

A multi-asset solution can help. Multi-asset solutions may provide investors with more opportunities, greater flexibility and enhanced diversification potential. Russell's multi-asset approach carefully examines every component of an investment strategy – with a total-portfolio perspective. Because success requires a willingness – and ability – to use every asset class and every investment strategy in its design to achieve investors’ real goals. Of course, diversification and multi-asset investing do not assure a profit or protect against loss.