Why multi-asset managers shouldn’t count on the past

Risk models are backward-looking but history won’t repeat itself

Georgina Taylor is multi-asset fund research director at Invesco Perpetual.

We all know past performance is no guide to future returns, but less appreciated is that past diversification is no guide to future risk  – a point of special concern for the fast-growing universe of multi-asset funds.

Over the past few years, fixed-income assets have been a helpful investment tool for multi-asset investors. During periods of poor performance for equity markets, such as in September to October 2014 and

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