CFA Institute Advocates Multi-asset Investment Strategies in New Book

CFA Institute, the global association of investment management professionals, has published Multi-Asset Strategies: The Future of Investment Management, a book on multi-asset investing that encourages investment professionals to take advantage of its considerable benefits. Launched 10 years following the Global Financial Crisis (GFC), the book examines multi-asset investing as a strategy for becoming more resilient to tough financial climates in the future.

Written in plain English, with no mathematical formulas, by 10 highly seasoned investment professionals and edited by Larry Cao, director of content for Asia Pacific at CFA Institute, the book offers a glimpse into the concepts and practices of multi-asset investing, showing its benefits for all investment professionals. Using case studies, distinguished portfolio managers Ben Inker and Dennis Stattman, among others, explain how they have successfully operated multi-asset portfolios.

Multi-asset investment strategies have enjoyed a steady rise in popularity following the GFC. In practice, however, they have not been embraced as widely by the investment profession, and they were assumed to be solely for quantitative investors and not relevant to single-asset-class portfolios.

Nick Pollard, managing director, Asia Pacific at CFA Institute, said, “This myth must be dispelled. At CFA Institute, we believe that the multi-asset investing process can benefit all investment professionals, from top-down asset allocators to managers of single-asset portfolios. As the voice of the industry, we are committed to ensuring that our members and the financial community at large stay up-to-date on trends and deliver results to investors.”  

The book was written for investment decision makers of all levels who are not already familiar with multi-asset investing, including chief investment officers looking to update their knowledge of the current developments in multi-asset investing, portfolio managers and analysts, wealth managers, and retail investors seeking to better manage their own investments.

Interviews with Dennis Stattman, a veteran portfolio manager in BlackRock’s Multi-Asset Strategies Group and a pioneer of asset allocation funds, and Ben Inker, head of GMO’s Asset Allocation team and a member of the GMO board of directors, offer readers insights into how products have been managed for long-term performance.

The book defines multi-asset investment as the latest iteration of what was previously known as a balanced fund. A multi-asset investment strategy provides a flexible structure to add value—as long as investment professionals understand the philosophy behind it.

“We hope that all investment professionals are able to appreciate the benefits of multi-asset investing and take advantage of an investment strategy that is outcome oriented.” Mr. Cao concluded.