Schroders Multi-Asset Survey Results
To mark the evolution of our multi-asset investment business over the last 10 years we have, in association with Professional Pensions, conducted a survey of pensions’ professionals and market participants. We wanted to hear from you, the UK pensions industry, about your experiences of the past and expectations for the future in multi-asset investing. Our world, as managers, clients and advisers is changing. Pressures on cost, regulatory demands placed on managers and schemes, shifting demographics, the maturing DB system demanding a new breed of investment strategies, the growth of efficient investment implementation techniques, along with a rapidly expanding, cost conscious DC pensions system, mean that more than ever we need to listen to the market in order to continue to deliver for our clients. The results of the survey have uncovered a variety of insights and calls to action for multi-asset managers and market participants.
- Return maximisation remains a crucial objective but is tempered by the need to reduce risks. While this is intuitively appealing for pension schemes, particularly given current deficit levels, we must also consider that there is a proliferation of multi-asset strategies targeting a range of alternative outcomes. These play a variety of roles for both DB and DC pension schemes within de-risking plans or glide paths respectively
- The explosion in diversified growth funds (DGFs) over the past ten years has resulted in that label becoming a generic “catch-all” term for multi-asset strategies. Given the range of funds, strategies, implementation methods and outcomes available under that umbrella, the brand “DGF” now only serves to confuse
- The cost of investing in multi-asset strategies is seen as both a benefit and a drawback. More work is needed to convince the market that multi-asset investing constitutes “value for money”
We hope you enjoy reading our report of the survey and we look forward to you joining us in shaping the future of multi-asset investing over the next 10 years.