Tech It Up Embracing Multi-Asset, Multi-Strategy Portfolios
Jun 5, 2025
The traditional 60/40 investment model is fading as multi-asset and multi-strategy portfolios soar in popularity. With assets under management growing from $2 trillion to $16 trillion in just two decades, new strategies are adapting to market volatility. The shift to sleeve-based portfolios offers transparency and confidence to investors. The conversation also highlights the crucial role of technology, like the Advent Genesis platform, in optimizing these modern investment approaches.
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Multi-Strategy Vs Multi-Asset Clarified
- Multi-strategy focuses on techniques while multi-asset spreads capital across asset classes to meet risk-return goals.
- Both terms are related but address different portfolio construction problems and objectives.
Three Forces Fueling Multi-Asset Adoption
- Three trends drive adoption: heightened volatility, loss of faith in 60/40, and demand for uncorrelated returns.
- Managers need to act as allocator, strategist, and risk manager to deliver resilient, customized portfolios.
60/40 Correlation Broke In 2022
- 60/40 failed its core assumption when equities and bonds moved together in 2022, breaking the expected negative correlation.
- That correlation breakdown eroded investor confidence in the classic balanced portfolio.