A multi-asset investor can now do three things to help obtain this. The key to diversification is to search out belongings whose returns are pushed by largely impartial components. Therefore effective diversification requires property whose returns usually are not affected by this cycle. This is where discovering new asset classes and understanding the totally different drivers of return pays dividends. Strategic asset allocation aims to enhance returns by providing a disciplined course of for recycling capital from costly property to cheaper ones – these with higher risk-adjusted anticipated returns. Corporate loans are floating-rate, senior-secured debt issued by firms.