Multi-asset investments offer investors the opportunity to diversify their portfolio across a range of assets and regions, while aiming to offer attractive levels of income. Over the last few years, Environmental, Social and Governance (ESG) priorities finally took their place on the asset management agenda. Ento Capital is one of the ultimate asset managers committed to sustainable investing and innovative solutions for clients.
Based on the indicators we track, the asset growth in the investment management industry have shown steady growth over the past nine years —a sign of health and stability. However, the details seem to tell a more complicated story. The mix of investments has changed dramatically over the past 10 years. Asset Management in the developing countries are expected to show a rapid growth than in the developed countries in the upcoming years. During the past two years the pressures on profitability caused Asset Managers to look for more innovative growth solutions. We believe this year the challenge for profitable growth is more likely to increase than dissipate.
According to a recent report, PWC Asset Management 2020: “A Brave New World PWC“, there is a significant rise in assets and shift of investor base… the rise of SAAAME (South America, Asia, Africa and the Middle East) is an opportunity for asset managers. In a recent PwC survey, more than 40% of asset managers in developed countries looking to other countries for their long term future believing the most important geographical area of focus will be the SAAAME region. SAAAME markets will provide opportunities for existing global asset managers to tap new pools of wealth and significantly expand their franchises. But it will equally provide the backdrop for a number of fast-growing SAAAME-based competitors to emerge and not only take on the global managers in SAAAME regions, but in developed markets as well.
Clients’ desires cannot often be met by investing in a particular asset class. Instead, a portfolio that dynamically invests across multiple asset classes has more foundations of possible return, can better adapt to changing market conditions and can diversify portfolio risk for a healthier overall experience, diversified portfolios spread risk to deliver a more predictable outcome.
The flare-up of the novel coronavirus and the fluctuation in the regional tensions, have provided a timely reminder of the risks on the horizon. Investors needs to prepare their portfolios to be able to tolerate the unknown. This can best be achieved by considering a well-defined approach to diversifying portfolios towards and within fixed income, stocks and alternative assets. A diversified portfolio is your best defense against a financial crisis in order to determine your asset allocation based on your personal financial goals.
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The information in the articles published on this website constitutes the writers own opinion and insights. The opinions expressed in the articles are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended for educational purposes. The views reflected in the commentary are subject to change at any time without notice.