Widespread falls across the board during the financial crisis meant that the diversification benefits associated with multi-asset funds did not materialise. Investors’ faith in these products was understandably shaken, but, asks Elisa Trovato, is interest starting to pick up?
The perfect storm of the financial crisis nullified the supposed diversification benefits of multi-asset class strategies, but Dr Junhua Lu argues for a range of innovative featues that can provide investors with a more efficient and effective diversification strategy