Close correlation between fixed income and equities to lead to ‘meagre returns’ A “mislabelling” of assets within multi-asset funds is exposing investors to greater risks than they realise, according to research from Asset Intelligence. The majority of multi-asset funds are placed in one of three Investment Association (IA) sectors, which are defined by their exposure to equity markets; namely the IA Mixed Investment 0-35% Shares, 20-60% Shares and 40-85% Shares sectors. But according to Asset Intelligence, this overlooks the exposure to other risky assets, such as emerging market debt (EMD), which are counted towards the fixed income exposure of multi-asset funds, but could be considered in the same risk risk category as equities.