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What’s driving multi-asset funds into alternatives

Many multi-asset funds are increasing their exposure to alternative assets after the coronavirus sell-off this year raised their concerns about diversification, according to Cerulli Associates. 

Fund managers want to mitigate the impact of highly-correlated, mainstream assets dropping in a market downturn, Cerulli said in a research report released Monday. The consulting firm said allocations to areas such as real estate, infrastructure, private equity, hedging strategies, and precious metals will keep rising as European managers seek alternative assets for diversification.

Gresham House plc (LON:GHE) is a London Stock Exchange quoted specialist alternative asset manager offering funds, direct investment and tailored investment solutions, including co-investment, in public equity, private assets, forestry, new energy and housing.