Although it was more volatile, the FTSE All Share performed well over the 10-year period; going up by 83.89 per cent.
Mr Wilson said: “You can also note that the multi-asset sector with the smallest composition of shares has the smoother profile during all the noted market times of distress. With bonds protecting capital as required.
“The FTSE All Share gives you the higher risk and higher reward pay-off, with risk measured in higher volatility – also currently outperforming all the other multi-asset sectors. For those investors who are more cautious and in search of yield, a multi-asset product tempers that for them.”
“With changing structural trends and macro headwinds and tailwinds, there is alpha to be gained from good allocators that can make the right calls. With current frothy equity valuations, there has been a growing trend of multi-asset managers adding more into their alternative buckets as the search for uncorrelated strategies moves into more niche areas, such as aircraft leasing, infrastructure or reinsurance to name a few, and managers continue to worry about correlations and tail risks.”
Additionally, he said more managers are also purchasing protection, in the form of puts or gold, with heightened geopolitical tensions and no sign of US tax reforms or Brexit blueprint.
Mr Wilson said: “In sum, we do find a lot of value in multi-asset products. You just have to sift through and avoid the mediocre and below average in order to make it worth your while.”
Ima Jackson-Obot is a features writer for Financial Adviser
