Classic mixed funds have a problem

• Multi-asset funds require broad diversification for stable long-term returns
• Rising life expectancy as a challenge for professional investors
• Experts discuss current market developments at the Assenagon Fund Forum

At the 16th Assenagon Fund Forum, investors from the institutional sector as well as from banks and large asset management companies once again gained valuable insights into current trends in the fund industry. Thomas Romig, Head of Multi Asset Portfolio Management at Assenagon, explained why successful multi-asset strategies are characterized by flexible and dynamic allocation management and different performance and risk profiles. "Multi-asset concepts that look globally for investment themes and are also familiar with the byways of the capital market have a clear advantage," said Romig in a panel discussion with Björn Drescher, CEO of the independent financial information service provider Drescher & Cie AG. The fact that traditional mixed funds with a focus on equities and bonds have come under pressure is mainly due to the fact that the negative correlation between these two forms of investment no longer exists to the same extent as it used to. "Both asset classes have often developed in parallel in recent years. Traditional mixed funds have a problem with this. Investors therefore need to manage their portfolios much more actively," added Romig.

Daniel Jakubowski, Head of Equity Portfolio Management at Assenagon, emphasized that the extreme performance of mega caps has significantly increased the concentration risk of large equity indices and thus reduced diversification. Investors should monitor their investments in mega caps closely. "The time could come when dependence on a few large companies becomes a risk. After all, history teaches us that every rally ends at some point," says Jakubowski.

Great uncertainty about future life expectancy

Another topic at the forum was future life expectancy. Guest speaker Prof. Dr. Jochen Ruß, Managing Director of the Institute of Finance and Actuarial Science, emphasized that people tend to live longer than they think, which makes long-term financial security necessary. "Current advances in research into slowing down the ageing process in particular could lead to life expectancy increasing more than expected, even at the level of larger collectives or even the population as a whole. This would have an impact not only on the risk management of insurers and pension funds, but also on state pension schemes and financial markets," said the leading expert on the link between biometrics and financial products.

The 16th Assenagon Fund Forum also offered the approximately 100 guests plenty of opportunity for personal exchange and traditionally ended with a visit to the Oktoberfest in Munich.

Munich, October 2, 2024