Adoption of ESG investing is growing as investors recognise these strategies’ potential for managing risk and driving performance. But as ESG labels proliferate, an understanding of the terminology involved is essential to finding the most appropriate approach.

Multi-asset strategies have grown to dominate European retail investment over the past decade, and new product innovation should ensure this trend continues. Indeed, testing market conditions can provide a platform for multi-asset portfolios to stand out: their diversified approach can give investors more flexibility to hunt down opportunities.

Investors have enjoyed following the bull market of recent years, but a return to volatility would mean an active approach is essential to navigating opportunities while mitigating external risks.

The expected return to market volatility could unsettle some investors, who have grown used to the steadily rising markets of the past decade. While markets will likely continue to offer opportunities, investors will need to navigate the overall environment more carefully, and active asset management can play a critical role.

There’s more to active asset management than beating an index benchmark. Working with clients to understand their liabilities and build an appropriate solution is key, says CEO Andreas Utermann. A benchmark may play a part, but more often a broader set of tools and strategies is involved.

Investors have benefited from an extended bull market in equities and bonds, but lower real returns are expected in coming years. CEO Andreas Utermann says the alpha that active managers could generate will be vital in protecting against inflation and delivering returns.

Short termism has had an increasing influence over investment decisions. Here, CEO Andreas Utermann argues that ESG gives managers an opportunity to refocus on the longer term – which can also increase the chance of outperformance.