Insurers weigh benefits of multi-asset funds

Asset managers promise high returns with low capital charges

It sounds too good to be true – asset managers are promising insurance companies that invest in multi-asset funds an equity-like return for a fraction of the capital requirement. As the shrewd management of capital becomes increasingly important in investment decision-making, firms are taking note. But are multi-asset funds the best way forward in the hunt for yield?    

The pitch from asset managers is that volatility is much lower for their multi-asset offerings than for single-asset portfolio