However, Jens Kummer of MARS Asset Management objected: “I feel more comfortable in seeing how professional investors allocate money than in watching alpha mistakes being made by private investors who mainly invest in the best asset classes of the past 12 months,” he said.
Looking for alternatives
The stellar growth of multi-asset funds corresponds with EIE fund selector polls. Absolute return, an asset class of which multi-asset funds are the main component, has consistently been one of the most popular investments in Germany. The number of fund buyers telling us they plan to increase their allocation to absolute return has continuously outstripped those wanting to decrease their exposure (see graph below). Last March, half of German fund selectors told us they want to increase their exposure. This was followed by record net inflows in April, May and June.
However, something might be about to change. In our most recent poll, the number of absolute return buyers fell below 20% for the first time, while interest for multi-strategy funds surged: half of Germany’s fund selectors are planning to increase their allocation.
