Multi-asset investing
Multi-asset investing can provide a diversified exposure to a broad range of markets
Why LGIM for multi-asset?
Our Asset Allocation team’s expertise includes economists, investment strategists and fund managers. They constantly monitor market cycles and the mix of their portfolios, combining robust risk mitigation strategies and active asset allocation to manage investments during times of market stress. Our scale and in-house expertise enables us to keep our funds simple, cost-effective and always focused on improving client outcomes.
Our latest views on markets and investment strategy
*Source: LGIM internal data as at 30 June 2024. The AUM disclosed is shown on the basis of client direct investments and excludes any double count from fund of fund holdings.
What is multi-asset investing?
Multi-asset investing can provide investors with a diversified exposure to a broad range of markets. By investing in a range of asset classes, countries, sectors and currencies, investors can avoid having a concentrated exposure to any one type of asset or driver of returns.
Risk management is an essential element of multi-asset investing. We incorporate risk management into our funds through a combination of advanced modelling techniques, investment judgement and oversight from our independent risk team. We aim to create portfolios that can perform through a variety of market conditions and that withstand or reduce the impact of negative market events, as we recognise that investors prefer a smoother ride to achieving their goals.
ESG and asset allocation
The Asset Allocation team is committed to integrating responsible investing as it continues to evolve, offering clients the choice of dedicated sustainable multi-asset funds, as well as integrating LGIM’s responsible investing expertise into our broader fund range. An example of the latter has been to set decarbonisation objectives for our UK institutional Diversified Growth Funds consistent with Net Zero and Paris Alignment goals. Additionally, LGIM’s Diversified ICAV Fund range is now categorised as Article 8 under SFDR (‘Sustainable Finance and Disclosure Regulation’).
Environmental, social and governance (ESG) considerations are integrated into our investment process at multiple levels, ensuring a complete approach to the challenge of navigating ESG-related financial risks and opportunities. ESG factors influence asset allocation decisions where material, and help to align portfolios to their objectives. At LGIM, we are privileged to have access to a range of ESG integrated building blocks to incorporate into our portfolios. We draw upon on LGIM’s industry-leading climate solutions research, active cross-asset class research forum and Investment Stewardship team.
Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
Multi-asset strategies
At LGIM, we are committed to providing attractive multi-asset strategies for our clients. This means targeting specific risk and return objectives and being market leaders in all aspects of product delivery and innovation.
Providing a spectrum of solutions
Our clients can harness the expertise of LGIM’s Asset Allocation team via Strategic core long-term, dynamically managed or low-volatility multi-asset solutions. We offer all of our multi-asset solutions on either a pooled or segregated basis.
Strategic asset allocation strategies
Our strategic asset allocation solutions are designed to form the core of any long-term investment portfolio. They offer investors a simple, diversified and transparent vehicle targeting lower volatility than equities, while aiming to provide a similar long-term rate of return. By using regular fund reviews, our strategic solutions consider not only long-term fundamentals, but also the impact of exceptional market circumstances.
Dynamic asset allocation strategies
Our dynamic multi-asset solutions are designed for investors requiring active, globally diversified and cost-efficient exposure to a wide range of asset classes. By managing the portfolio's asset allocation actively, our dynamic multi-asset solutions seek attractive opportunities to both generate returns and reduce downside risk.
Low-equity beta asset allocation strategies
Our low-equity beta multi-asset solutions are designed for investors seeking an active, low-volatility alternative to a traditional diversified solution. They access complementary sources of return, including market returns, alternative strategies and tactical opportunities, while also aiming to manage overall portfolio volatility levels actively.
Responsible investing
Our responsible investing site hosts a range of educational and thought-provoking articles, blogs and videos as well as helpful information on our latest stewardship activity.
Future World Multi-Asset Fund
The Future World Multi-Asset Fund aims to provide long-term investment growth through exposure to a diversified range of asset classes (excluding physical property) while reflecting significant ESG issues in the fund’s investment strategy. This explicit focus on ESG means the Fund aims to demonstrate a clearly improved ESG profile in its investments, across a number of dimensions.
Asset Allocation team
LGIM has over 35 years of experience in multi-asset investments. Our dedicated Asset Allocation team combines strategic economic views with insights into a diversified range of global asset classes, strong portfolio management capabilities and sophisticated risk management. The macro research and investment ideas generated by the team are key, not just for our Asset Allocation strategies, but also in managing our shareholders capital, active fixed income and Liability Driven Investment (LDI) mandates on behalf of clients.
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Key risks
The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.
While LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.