What is a Multi Asset Strategies Group?
Hello,
I’m a sophomore at Cornell/Brown/NYU and I was fortunate to get a ‘22 offer in a Multi Asset Strategies group. I did some research and it looks like constructing portfolios without actual investing. The team is under AM but can anyone give insight into the role? How does it compare to an AM role in a fixed income or equity group? If given both options will a Multi Asset Strategies Team prepare me better long term.
Bump
That's pretty neat, congrats!
Depending on the firm but some it could be in a research like function... so their role is primarily to use global trends, pick sectors and products... write about it and share with PMs or sometimes they have funds and can also invest in their own strategies/ideas
Hi, I’m wondering since they are multi-asset team, how can they invest in their own strategy? Do they for example, invest in multiple asset classes using the weight that they came up with?
So, most large AMs have a Multi-Asset group of some description (sometime dubbed "Solutions"). The term is broad and can mean a lot of different things, but generally describes running investment strategies that have a remit to invest across multiple asset classes.
In practice, this can mean standalone multi-asset strategies like Standard Life's GARS / Invesco GTR / Aviva AIMS. It can also be a group that sleeves together underlying strategies from within the business to form a Fund (i.e. dynamically allocate between your own equity/bond/REIT Funds).
Generally, the common thread is that the active return ("alpha") is, at least in part, the result of the Portfolio Manager's ability to allocate between asset classes (clearly, you want to be investing in the stuff that looks attractive on a short/medium term basis and shorting/avoiding the opposite).
It's a pretty cool offer to get out of college. The upside is that you'll get exposure to a lot of different asset classes / investing styles. If you want a career in AM, this gives you a lot of flexibility and optionality further down the line.
The above is a really solid description of Multi-Asset Solutions at most companies. The focus on asset allocation for the generation of alpha is the key here. You help to construct portfolios with portfolio managers that match what clients want and that will best generate alpha.
As mentioned it's a great first job out of college to get since it gives you a lot of career optionality. You'll really enjoy it if that's what you want to do and can easily build a career out of it.
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