Investment Strategies

Flexible Multi-Asset Investment Has Been Key For Investors Since 2007 - Barings

Max Skjönsberg London 1 May 2012

Flexible Multi-Asset Investment Has Been Key For Investors Since 2007 - Barings

Multi-asset managers need to have the ability to nimbly move in and out of asset classes as volatility has become the new norm in the past five years, says Baring Asset Management.

The investment house has studied the best and worst performing asset classes since 2007 and found examples of the best and worst performing assets having changed dramatically from one year to the next.

In the past five years, emerging market equities have twice been the best performing out of major asset classes, in 2007 and 2009, but they have also been the worst performers twice, in 2008 and 2011. UK government bonds were one of the stars last year, returning over 15 per cent in a difficult year, but before that they had been in the bottom tier two years on the trot. Asia ex-Japan equities and European equities are two other asset classes that have experienced high levels of volatility in the past year.

Barings believes that the study proves that multi-asset investing with an unrestricted mandate is a better alternative than investing in stocks alone.

Looking forward, Andrew Cole, manager of the Baring Multi-Asset Fund, said that "so far, 2012 is looking more positive for equities across the globe but there are a number of risks on the table that could provide a strong headwind to performance here".

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes