The Simple Diet: Managing multi-asset portfolios in uncertainty

Illiquid assets create issues

clock • 4 min read

Many of us embrace a diet to improve health, target personal fitness goals or enhance self-esteem. Yet anyone who has ever tried this knows that keeping it simple is crucial.

A similar concept can be applied to multi-asset portfolios when confronting an economic downturn. Much like removing complexity from our diet and eating simple, healthy ingredients, in these times we have to remove complicated assets and focus on a smaller number of manageable elements. Calories and portion sizes become more controllable, mirroring the ability of portfolio managers to stay within their risk parameters. Simplifying exposures can prudently position portfolios, mitigating outsized risks and idiosyncratic factors. Higher for longer: A 'helpful development' for multi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week