Behavioural finance suggests investors are more concerned over poor performance and loss than potential gains so the events of the summer and the recent market sell-off will have been felt more keenly than most.
Everything we were taught about multi-asset investing was found wanting as the traditional equity/bod mix did not, as would normally be expected, provide the positive influences of diversification.
Schroders’ James Rainbow explains how his firm’s multi-manager proposition is positioned to help counter this unanticipated increase in correlation (it will happen again!) thanks to a combination of managers who are doing something genuinely different alongside cash as a positive active allocation choice.
