The 4 pillars of a successful
multi-asset strategy

Allianz Global Investors has a long tradition of multi-asset investing. The asset manager distinguishes 4 crucial success factors for a multi-asset strategy.

1/ Broad investment universe
The fund managers of the multi-asset funds have access to a huge investment universe. “Good diversification not only reduces risks, but also optimizes returns,” says Marcus Bayer, Senior Product Specialist for Multi Asset at Allianz Global Investors.

Depending on the risk profile, 60 to 80 percent of the investment portfolios of the multi asset funds are composed of shares and bonds from developed countries. The fund manager can invest up to 40 percent in other asset classes such as emerging markets equities, emerging markets bonds, high-yield bonds, private equity or listed real estate.

2/ Active asset allocation
A large diversification alone is not sufficient to achieve a higher return. It is mainly about selecting the right asset classes and assigning a weight that can achieve an optimal return. “Active asset allocation is crucial. The asset class that recorded the largest losses one year can be the biggest winner in another. The goal should always be to find out which asset classes will perform best in the coming years. That is only possible with a sophisticated investment strategy,” says Bayer. 

Unlike most other asset managers, the multi-asset investment strategy of Allianz Global Investors is not only based on a fundamental analysis of the different asset classes. The asset manager adds a systematic approach that allows to capture trends.

3/ Active risk management
A diversified investment portfolio automatically ensures a healthier risk spread. Nevertheless, it is still important to provide additional risk management. “We constantly monitor the defined risk budget or our multi-asset funds. If there is a significant risk that the risk budget will be exceeded, the risk positions are immediately reduced,” says Bayer.

4/ Active security selection
The final investment strategy must still be put together with concrete securities. ESG-criteria play an important role in the selection process. The ESG-strategy combines the exclusion of certain critical activities or industry groups, with a best-in-class approach for the remaining securities. 

This is a marketing communication. Please refer to the prospectuses of the Funds and to the Key Information Documents. Documents before making any final investment decisions. For fund distributors and professional investors only. For Investors in France: Investors should note that, relative to the expectations of the Autorité des Marchés Financiers, these funds present disproportionate communication on the consideration of non-financial criteria in its investment policy.

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including positions with respect to short-term fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. The volatility of fund unit/share prices may be increased or even strongly increased. Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The Management Company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in accordance with applicable de-notification regulation. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.

For investors in Europe (excluding Switzerland & the United Kingdom)
For a free copy of the sales prospectus, incorporation documents, daily fund prices, Key Information Document, latest annual and semi-annual financial reports, contact the issuer at the address indicated below or www.allianzgi-regulatory.eu. Austrian investors may also contact the Austrian information agent Erste Bank der österreichischen Sparkassen AG, Am Belvedere 1, AT-1100 Vienna. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established branches in France, Italy, Spain, Luxembourg, Sweden, Belgium and the Netherlands. Contact details and information on the local regulation are available here (www.allianzgi.com/Info). The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights

For investors in Switzerland
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact [the Swiss funds’ representative and paying agent BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, CH-8002 Zürich - for Swiss retail investors only] or the issuer either electronically or by mail at the given address. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH. The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights

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