- A conservative multi-asset strategy generally has a relatively larger exposure to government bonds and investment-grade (IG) debts than equities to manage portfolio risk.
- As the chart shows, a conservative multi-asset portfolio potentially demonstrates slightly higher volatility compared with government bonds and IG bonds, but could be less volatile than assets including equities and high-yield bonds.
Characteristics of a conservative multi-asset strategy2
Source: Bloomberg Finance L.P., Dow Jones, FactSet, MSCI, Standard & Poor’s, J.P. Morgan Asset Management. Hypothetical portfolios were created to illustrate different risk/return profiles and are not meant to represent actual asset allocation. US dollar total return calculations are based on MSCI Total Return, Bloomberg Barclays and J.P. Morgan indices. APxJ stands for MSCI AC Asia Pacific ex-Japan, EM stands for emerging markets, EMD stands for emerging market debt, HY stands for high yield, DM stands for developed markets and REIT stands for real estate investment trust. *Monthly total returns between 31.03.2004 and 31.03.2019 used for all asset classes. Past performance is not a reliable indicator of current and future results. Data reflect most recently available as of 31.03.2019.