Diversification used to mean tempering your core equity exposure with a modest bond allocation to protect against market shocks. But in this low yield, low return environment, single asset solutions no longer pass muster and investors need more sophisticated multi-asset funds to do the same job.
However, these long-only funds were found lacking during the darkest days of the global financial crisis when virtually all asset classes fell together.
The Aviva Investors Multi Strategy Target Return Fund can make use of investment tools more akin to the hedge fund world such as investing via derivatives and making relative value trades in a very wide range of sectors and markets. But with lower fees, daily liquidity and widespread institutional as well as retail market support, that's where the similarities start and end.
Aviva Investors' head of strategy Ian Pizer talks to Financial Standard's Mark Smith about how fund's flexible strategy works towards meeting investors' objectives.