In place of a traditional investment process that separates decision-making of asset classes, the team adopts an integrated strategy to capture the opportunities over various stages of a company’s business cycle, and select the best suited investment vehicle to enhance the portfolio’s long-term return.
Due to the distinctive features of equities and bonds, many investors presume their investment strategies and workflows are drastically different. Indeed, a traditional multi-asset strategy tends to separate them: the equity team oversees stock-picking, while the bond team focuses on debts selection; the two teams then convene to piece together a complete multi-asset investment portfolio.
Nonetheless, this highly specialised decision-making process creates practical problems. For example, as the AllianzGI income and growth strategy involves multiple asset classes - equities, convertibles, and high yield bonds – asset specialisation will complicate and fragment the investment process. For that reason, chief investment officer Doug Forsyth led the team to create an innovative integrated workflow that optimises investment opportunities across different asset classes.
There is no guarantee that these investment strategies and processes will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.