What type of investor is Multi-Asset investing for?
Someone who wants to:
Asset classes have different characteristics; some more up and down together; some move opposite and some will not change that much under normal circumstances. The way that these assets move together--or not--is often referred to as their correlation.
Blending different assets together that are not correlated will smooth the ups and downs and give your portfolio a more steady development. Moreover, in modern portfolio theory, this way of blending assets that are not correlated is proven to improve your returns but with less volatility -- giving us the best of both worlds.
A good real-life example of this phenomenon was during the crisis of 2000-2003, where pure stock portfolios lost a lot. Had other assets like gold, property, bonds, and cash been included in your portfolio, you would have been much better off.
The most common way to access different asset classes is through expert fund managers in the areas we want to invest. These independent managers will go through a thorough screening to make sure that they qualify as one of the best performing funds in their niche. Mosaic Global Fund can also use exchange-traded funds for a more passive exposure to certain investments as well as structured products.
The best known Multi-Asset class investor is probably David Swensen at Yale University in the U.S. He has invested in this way for over 20 years and has achieved a return of around 17% annually during this period. Many wealthy families and individuals are using this way of investing because of the low volatility with the possibility to achieve very good returns with limited downside risk.