Taking on 'Smart Risk' With a Multi-Asset Approach



In this low-interest rate environment, the biggest risk may be not taking any. Find out how multi-asset strategies that put "smart risk on autopilot" may be able to help investors reduce risks without missing out on returns.

Multi-asset strategies for outwitting oneself

Investors often react emotionally and irrationally, according to experts in behavioural finance. For example, investors often have limited visibility due to inadequate information. The window, or rather the window frame, through which they observe the world of investments is simply not big enough to provide a view of all the necessary information, investment alternatives or contradictory facts. In addition, they often exhibit a home bias – a preference for securities from companies in their own country. The result: they lack diversification and ignore better alternatives. Multi-asset strategies can help investors to outsmart themselves – easily and automatically.

Why taking on 'smart risk' is key

In this low-interest rate environment, we believe the biggest risk is not taking any risk at all. When making investment decisions, "smart risk" is crucial.

Multi-asset solutions can be considered an attractive form of investment because, thanks to the broad spectrum of investment opportunities and the flexible use of trends, investors can take advantage of numerous opportunities for returns worldwide whilst simultaneously achieving a balanced risk structure for their investments.

This is a form of “autopilot” that helps investors to reduce risks without foregoing opportunities for returns.

For more information, read Smart Risk with Multi-Asset Solutions.

Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This material does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.

This material has not been reviewed by any regulatory authorities. In mainland China, it is used only as supporting material to the offshore investment products offered by commercial banks under the Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations.

This material is being distributed by the following Allianz Global Investors companies: Allianz Global Investors U.S. LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC); Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; and Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator; Allianz Global Investors Korea Ltd., licensed by the Korea Financial Services Commission; and Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan.

The complex and changing world of fiduciary duty

The compex and changing world


The concept of fiduciary management is evolving at time when responsibilities are shifting. At Allianz Global Investors, we believe that it is only through active and on-going engagement, proxy voting and stewardship that we can best protect the interests of investors today and in the future.

Key takeaways

  • Investors have many rights which need to be defended and utilised to their benefit, and for which asset managers have the fiduciary responsibility to fulfil.
  • Asset managers are obligated to meet the full and changing fiduciary duties of investors, providing the opportunity to add value financially and to make a difference environmentally and socially for all.
  • Active investors must act responsibly to hold companies and their management to account for all aspects of strategy, business model and investment.
  • Engagement with companies should combine all the traditional analytical skills of financial and industry analysis with a more diverse set of expertise in areas such as the environment, climate change, pollution, social and other complex governance issues. This engagement can only be consistently and globally fulfilled by active asset managers with substantial research and portfolio management resources, who meet company management regularly thereby creating more of an impact.