What is a multi-asset capital growth strategy?
A capital growth strategy is all about boosting the overall value of your investment portfolio over time. This growth-investing approach is usually structured around allocating a greater part of your fund to riskier assets, which may vary across regions, sectors or themes. To help generate long-term growth, this approach invests across asset classes but may comprise a sizeable allocation to equities, in growth sectors, such as technology, healthcare and industrials. Growth companies are firms that we believe are expected – although not guaranteed – to grow their earnings at an above-average pace.
The remainder of a multi-asset growth portfolio may be invested in bonds, money market securities and other assets, to not only mitigate market volatility but also provide diversification benefits. As with any investment strategy, risk is involved. Investors may not get back what they invest and can be exposed to other risks, such as credit, counterparty and geopolitical risks. As such, individuals should always approach a capital growth strategy with a long-term view. When assessing a growth solution, it is important that your strategy is aligned not only with your investment objectives but also your risk appetite.
Who can potentially benefit from a multi-asset capital growth strategy?
A multi-asset capital growth solution could be used to fund future projects, or retirement savings. Growth investing requires patience, as it focuses on what a company can deliver in the future – for example, such companies tend to reinvest their earnings, rather than paying them out as dividends. Given the potential risk of capital loss, we believe capital growth strategies are better suited to investors with a higher level of risk tolerance. As such, multi-asset growth strategies are better suited to those with a long-term time horizon.
AXA IM’s multi-asset approach to capital growth
We aim to provide an unconstrained, global, multi-asset approach, which allows us to take advantage of multiple growth investment opportunities. We are committed to helping you find suitable investments for growth generation with robust solutions, risk monitoring and flexible asset allocation.
A triple-filtered approach to delivering long-term value
Our Multi-Asset team applies three filters to identifying potential investment opportunities.
- World Filter: We analyse approximately 150 proprietary signals to identify the primary influences at play, at any given time across global markets. These signals look at key market drivers including the macroeconomic environment, technical factors as well as valuations and overall investor sentiment.
- Conviction Filter: This is how we find the best potential investment opportunities. We identify the broadest and potentially most effective universe of investment ideas across asset classes to build outcome-focused portfolios.
- Risk Filter: Managing risk is in our DNA. In an effort to deliver long-term value, we apply a multi-tiered risk filter - diversified and flexible allocation, ESG criteria and market exposure checks - to maintain the sustainability of our strategies.
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