Multi-asset propositions are most favoured

Multi-Asset propositions are the preferred strategies in terms of risk versus return, a study by NN Investment Partners, formerly ING Investment Management, has revealed.

According to the survey of 107 international institutional investors in April, 57 per cent expressed an affinity for multi-asset propositions, such as balanced and total return products, compared with 55 per cent for equities and 27 per cent hedge funds (responders were able to give more than one answer).

In an attempt to replicate the benefits of multi-asset strategies, 44 per cent said they had increased diversification in the past year, while 64 per cent maintained their overall risk position.

Article continues after advert

Notably, 27 per cent said they had reduced their cash allocation, indicating a preference for more risk-friendly investment strategies.

Valentijn van Nieuwenhuijzen, head of NN Investment Partners’ multi-asset strategy, said: “In the current low-yield environment investors are increasingly looking to mitigate their risk while still aiming for attractive returns.

“It is therefore no surprise to see that they are turning to multi-asset strategies which provide diversity and adaptability that help create a safety net against losses.”