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THEAM’s multi-asset strategies

Why invest in THEAM’s diversified financial products?

The current economic environment of very low interest rates and a fragile, uneven global recovery makes it far more difficult for investors to achieve their desired returns from conventional financial investments. As uncertainty and volatility continue on the financial markets, it is understandable that investors have become more risk-averse, especially given the major stock market crises of recent years.

Multi-asset management can provide a solution to this issue as it can adapt investments in response to changing financial market conditions and offer investors a sound risk management contract. The aim of “diversified” or “multi-asset” funds is to enable investors to look differently at those asset classes they believe to be high-risk on a stand-alone basis, by providing them with a set of diversification tools and expertise that enable tight risk control and continual flexibility.

Flexible and absolute return strategies aimed at diversifying risk

The potential gain linked to diversification is higher when an investor subscribes to several diversified funds that are managed using various techniques and that involve multiple asset classes. This provides greater flexibility in responding to market conditions. The scope of this fund category is very broad. Diversification within a fund may be achieved in various ways, for example through choice of conviction, management style, and the ability to invest across a broad array of asset classes or geographical regions.

THEAM’s expertise in multi-asset management involves two kinds of strategies, flexible funds and “Absolute return” funds.

Flexible funds

The aim of “flexible” funds is to follow market trends: their exposure can be adjusted in line with financial market movements. The weighting allocated to the various assets can be flexible, thanks to a quantitative model that enables the ideal weighting for each asset in the portfolio to be calculated. This modelling process is designed according to the volatility of each asset class. The management team focuses on investing in a broad asset universe so that no single asset class dominates the portfolio at any time. THEAM’s flexible funds gives investors a clear view on the capital invested, the investment universe, the reasons for the weightings selected and the level of portfolio risk throughout the investment period. These flexible funds are particularly suited to a medium or long-term wealth management approach.

Absolute return funds

The objective of absolute return funds is to generate a broadly consistent performance regardless of the market environment, without the constraint of a benchmark index or standard allocation. THEAM’s particular strength relates to its management philosophy, which emphasises the diversification of the portfolios both in terms of asset classes and management styles to minimise the risk of over-concentration on a particular type of asset or single strategy.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being in risk of capital loss

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Investors Corner - Just like the Saint Fermin Pamplona bull run, financial markets can arouse fear and excitement. Broadly diversified, multi-asset investments are in our view one of the best options for investors looking to survive in the face of a bemusing array of GDP growth uncertainties, swings in macroeconomic data, geopolitical fears and market volatility that has now stabilised at levels close to the long-term average.

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Investment Partners.