European equities, the top performer in 2012, continued to outperform in 2013, says research by Baring Asset Management. However, North American equities reached the top spot, driven by continued economic growth in the U.S. with good employment data, stronger retail sales, a recovery in house prices, and improvement in consumer confidence. The research also reflects the improving environment in Europe. However, it is clear that volatility remains in a number of major asset classes, with many of the best and worst performing assets changing dramatically from one year to the next. The study provides one explanation why multi-asset investing with an unrestricted mandate to dynamically move into and out of asset classes has found favour with investors looking to achieve their targeted returns with less volatility than investing in equities alone.
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