Executive Summary
Not too long ago, investors, consultants, and advisors in the asset management field struggled with the role of Multi-Asset Class (MAC) strategies. They were perceived as misfits, given their cross-asset mandate and their dynamic nature. Today, however, they are utilized and embraced in all sorts of different settings. Given our large footprint and multiple decades of managing MAC strategies, we looked at our client base and determined that there are five (six, if you count their use in Target Date Funds as a distinct usage) “buckets” that represent the ways in which investors appear to be using them: 1) Liquid Alternatives; 2) Core; 3) “Swing” Manager (in both a traditional policy benchmark setting, or as part of a Target Date setting); 4) Liability Driven Investing + Diversified Growth; and 5) a Real Return Strategy. This paper helps explain the driving rationale for each.
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