Multi-Asset Funds: Packing A Punch

There never is really one hero, whether in the movies, in a story, or in investing. While of course the proclaimed hero creates more noise and gets more attention, like in the case of equities, we all know that equity is the hero of your portfolio, but your portfolio is incomplete without the stability of debt or the hedge of gold/silver. Different asset classes perform differently through market cycles. For example, the average 5-year rolling returns on equity are 14 per cent, while the returns for fixed income, gold, and real estate are 8 per cent, 12 per cent, and 9 per cent, respectively, for the same time period. While equity has performed well over a 5-year period, if you look at intermittent performance, you will see that there have been years when other asset classes have outperformed equities. This difference in market performance primarily stems from the fact that multiple...