Asset Allocation
Asset allocation involves combining the investment ideas derived from the management of equity, fixed-income and real-estate portfolios by blending these asset classes to achieve the optimum mix.
Active asset allocation can optimise the risk/reward profile of a portfolio and thus the nature of its performance. The broad diversification of investments across a wide range of asset classes – from liquid assets via various fixed-income segments to equities and commodities – is one of the most efficient risk-management tools.
Our intelligent multi-asset solutions bring together the capital-market expertise of the entire portfolio-management team. The combination of different asset classes and investment styles in conjunction with our active management approach can result in a significant reduction in risk. This makes multi-asset funds a sought-after investment solution in an increasingly complex and challenging market environment.
Multi-asset funds provide investors with efficient access to various asset classes or management styles in the form of a single investment solution. As well as frequently delivering impressive returns, the wide range of investments can also significantly reduce investment risk in many market phases. Additionally, our actively managed multi-asset funds are based on selected global fund strategies. The addition of a wide range of investment strategies and styles makes for intelligent risk management and can contribute to a further reduction in portfolio risk.
The catalyst for our investment strategy is the Union Investment Committee (UIC). The UIC has enabled us to completely redefine our decision-making process. Our aim is to improve the integration of the skills within portfolio management to an even greater extent and to incorporate the ideas of all team members, allowing us to pool our capital-market expertise in an intelligent manner. To do so, all market assessments and investment ideas from all areas of portfolio management are brought together before being evaluated.
Using a systematic process ultimately produces an investment strategy that consists of a risk focus and a multi-asset model portfolio, which all fund managers in portfolio-management asset allocation use as a guideline for their day-to-day work.