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Multi-asset investments

For more information on the financial terms used in this page, please consult the glossary.

Contents

What is multi-asset investing?

Multi-asset funds can offer an off-the-shelf solution for investors looking for diversification of asset classes in one investment. These funds typically hold a blend of different investments because individual asset classes, such as bonds and company shares, can perform differently over time as market conditions change. Investing in a range of assets can therefore help insulate investors from the ups and downs that an individual type of asset can experience.

Benefits of investing in multi-asset funds

Along with diversification in a single investment, multi-asset funds offer several benefits:

  • Accessibility – you need much less money to create a diversified investment with a multi-asset fund than you do to put together your own
  • Convenience – a ready-made solution to get professional diversification
  • Economies of scale – investment costs can be spread across large numbers of investors, which can help reduce fees
  • Flexibility – fund managers can adjust the mix of assets to respond to changing market conditions    

There are also risks and considerations with investing in multi-asset funds:

  • Benchmarking – multi-asset funds usually aim for a specific rate of return rather than outperforming a specific benchmark index, which can make it harder to compare performance
  • Suitability – each fund has different aims and objectives, so you need to check what is ‘under the bonnet’ to ensure it aligns with your goals and attitude towards risk

For more information, please refer to our M&G Guide to multi-asset investing.

Our approach

Our M&G Multi Asset team invests across global asset classes using their distinctive ‘Episode’ investment process. We have applied this approach consistently over time and believe we are well-positioned to select attractive investment opportunities globally.

We believe asset allocation – managing the mix of investments in a portfolio to balance risk and reward, according to market conditions – is the primary driver of investment returns.

That’s why we aim to take a dynamic and flexible approach, helping customers achieve optimal asset allocation by adjusting portfolios throughout the market cycle. By actively buying and selling different assets, we look to capitalise on what we see as opportunities, and to navigate risk.

Our investment process is grounded in behavioural finance theory. We look for market ‘Episodes’ – periods when asset prices are overly influenced by investors’ emotional behaviour rather than the long-term fundamental drivers of returns – and aim to respond with calm, considered decisions. We combine this analysis with in-depth research to assess the relative value of assets over the medium- to long-term, helping us identify what we believe are investment opportunities.

Through our approach, we look to help customers achieve their investment goals, whether that is to grow their savings, generate an income, preserve their capital or to pursue returns by investing sustainably.

Our range

While each fund differs in terms of its specific investment strategy, they can be grouped into different categories, according to their characteristics.

Stand-alone funds

Our multi-asset funds are what we class as 'stand-alone' funds. You can hold these funds individually, and not necessarily as part of a wider investment portfolio. Multi-asset funds spread your money across different asset types so you don't have ‘all your eggs in one basket’, offering you an off-the-shelf solution if you’re looking for diversification in one investment.

Find out more about diversification in our handy M&G Guides.

Our multi-asset funds

Highly flexible and tactical asset allocation strategies for capital growth.
 

Growing income and capital over market cycles using a flexible and diversified approach.
 

Highly flexible strategies designed to protect capital in changing market environments.
 

A flexible, multi asset strategy that accesses a diversified range of global assets, with sustainability characteristics in its investment process, but without a specific sustainability goal.
 

Choosing a fund

Like with any investment, you should carefully consider if multi-asset investments fit with your personal aims and objectives before investing. Importantly, you should also check that the profiles of the funds match your own investment timeframe and appetite for risk and reward. You can find out more about the risks you need to consider before investing in our Key Investor Information Documents (KIIDs).

Before selecting funds you should read an up-to-date version of your chosen fund's 'Key Documents': Key Investor Information Document (KIID), Prospectus and, for funds with sustainability characteristics or with a sustainability label, the Consumer-Facing Disclosure (CFD). These can be found on each fund page and provide important information to help you understand the funds.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.

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