Analysis of a typical fund involves examining its returns and the risks taken to achieve those returns to determine its investment suitability. Assessing multi-asset funds begins in the same way, but also includes an important second stage: examining the fund to determine the diversification benefits it brings to your entire portfolio. According to Brian Singer, leader of the William Blair Macro Allocation Fund portfolio management team, a multi-asset portfolio has the ability to capture upside returns and avoid downside movements, if they’re properly designed. He explains in this video:
This video is the fourth in a nine part video series from William Blair on alternative investments.