Five reasons traders choose multi-asset brokers Saxo Bank

Multi-asset strategies offer enormous flexibility to meet specific investment goals, with broad options for investing across securities and sectors. These types of strategies also offer more diversification compared to investing solely in fixed income or equity funds. A multi-asset investment strategy combines different types of asset classes to create a nimble and broadly diversified portfolio.

• Moreover, lengthy development times for change requests can negatively impact an insurer’s productivity, product life cycles, and service delivery.
• Managing downside risk has never been more important than in the current environment.
• We incorporate sustainability insights and ESG information into our research in pursuit of delivering outcomes with more precision – especially over the long-term.
• Hedging is an effective risk-management strategy that many experienced traders employ to offset short-term risks in their core investments.

However, by taking a look at Saxo’s client book, we can see that 56% of our 100 most profitable clients are trading across asset classes (profitability based on generated year-to-date nominal PnL, January 1st – September 30th 2019). However, very low and negative government bond yields around the world have raised questions about how much protection duration can provide in a risk-off scenario. Still, the uncertain outlook for growth and risk-asset returns justifies a risk-management approach that offsets some equity exposure with interest-rate exposure. Even in Europe, where yields are low, duration can help, in part because the curve is steeper than that in the US, providing greater return potential. And much of the meager earnings gains will likely be driven by buybacks and corporate financing activities – not sales growth. In Europe, equity valuations are more attractive, and a weak euro should support the eurozone’s many export-oriented companies.

Rebalancing and tactical opportunities

Importantly, we do not make investment decisions based on ESG information in isolation; instead, we assess a variety of economic factors, including risk and valuation metrics. Our approach is to broaden the total amount of information we consider in order to improve investment analysis. It is important that you understand that with investments, your capital is at risk. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us.

In addition, there is a growing trend for consumer protection legislation, in response to the incorrect selling of insurance instruments in the past. This legislation increases compliance costs and potentially impacts regulatory capital at a time when there are enormous competitive pressures. Managing downside risk has never been more important than in the current environment. With existing solutions often focussing largely on traditional asset classes, the pre-trade decision support tools available are often limited to basic modeling/what-if analysis of a single asset class.

Consider Select Alternative Strategies

On the one hand, capital-markets services are often an essential part of the regional and national banks’ broader product offering, and they serve as a critical way to monetize relationship lending. These banks also see these services as essential in maintaining their relevance to more sophisticated corporations multi asset broker and investors. Scale is increasingly important in the markets in flow products (equities, futures, FX, government bonds, cleared interest-rate swaps) because electronification in these products has driven margins down. This forces banks to compensate with greater volumes to maintain and grow revenues.

Getting M&A transactions properly documented for maximum protections in the event something goes wrong down the road is not easy. And, it is most likely not your general counsel; it is a lawyer with deep M&A experience who has lived through the “negotiation wars” over time, and has battle scars to show for it. Do not be cheap here, pay up for the best M&A lawyer you can afford, as it could end up saving you millions in capital and hours of heartache down the road. I have always been a fan of considering mergers & acquisitions as a viable way to more quickly scale your business. Below are some of things that can go materially wrong with M&A, so do your research and plan accordingly to avoid these known pitfalls. IBs must have a
thorough understanding of the cultural and regulatory nuances of each African
country in which they operate.

What is a multi-asset strategy?

This approach is undertaken in relation to a baseline scenario and a number of other macroeconomic scenarios that an insurer thinks might represent a plausible future operating environment (illustrated in Figure 2). The next few years present major challenges for insurers, but those that adapt and offer new products and services that customers seek will differentiate themselves. BlackRock offers a wide range of multi-asset strategies to help you achieve your investment goals, no matter what they may be.

The numerous sources of raw analytical data within an organization give rise to questions regarding its quality, consistency, and reliability, especially as the volume of data increases. To compound the problem, both analytical and operational data are often organized into separate silos, leading to duplication of data and inconsistent values. Analytical data often comes disaggregated from multiple silos according to different dimensions, such as legal entity, line of business, risk category, etc. The silo approach tends to produce low-quality data, mainly due to the proliferation of data duplication and multiple data quality approaches from one silo to the next. An investment strategy that works well for one person may not be the best fit for another. Multi-asset strategies offer flexibility to meet investment goals with broad options for investing across sectors, and more diversification than other investment strategies.

Investment strategies

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