Financial Professionals


From Multi-Asset to Multi-Strategy


David Lis
Chief Investment Officer, Equities and Multi-Asset, Aviva Investors

Multi-strategy portfolios are a natural evolution from multi-asset (aka “balanced” portfolios). Both multi-strategy and multi-asset portfolios invest across a diverse range of asset classes and seek to offer investors more attractive risk-adjusted returns than are available by investing in single asset classes alone. However, in today’s changing market environment, multi-strategy portfolios offer important advantages over multi-asset portfolios.

Aggressive global central bank monetary policy has boosted asset prices in recent years. Equity and bond prices have soared in tandem, while commercial property has also risen strongly. As a result, investing in a traditional mix of assets — equities for capital growth, bonds for income, and alternatives for extra diversification — will reduce a portfolio’s risk by less than it once did.

To pursue their objectives, multi-strategy portfolios deploy multiple interactive investment strategies across and within asset classes, often using financial instruments that are inaccessible to managers of multi-asset portfolios. Because they have the ability to hold both long and short positions, multi-strategy portfolios can perform well in all kinds of market conditions, and their returns tend to be relatively uncorrelated to equities, bonds, and other traditional asset classes.

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Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.