29/09/2022

60/40 no longer suitable according to professional investors

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40% of professional investors believe the traditional 60/40 portfolio is no longer suitable, according to a survey of professional investors by Fulcrum Asset Management. A further 24% believed that the strategy “needs to be reviewed”, while in contrast 36% believed it still had a strong future.

Commenting on the findings of the survey which was carried out with a mixture of institutional investors and financial advisers, Chief Investment Officer of Fulcrum Asset Management, Suhail Shaikh said:

 

“The findings of our survey showing a net score of nearly two-thirds of investors (64%) thinking that 60/40 is no longer fit for purpose or needs reviewing, chime with our own beliefs of how investors should be tackling the current volatile market conditions.

 

Our global macro strategy is designed to generate returns, offer downside protection and provide complementarity. As well as traditional asset classes, such as equities and bonds, we think it is important to be invested in a wide variety of uncorrelated return streams.

 

Specifically, we seek to limit volatility and performance drawdowns to realistic and acceptable levels so that our clients can maintain an appropriate investment horizon and avoid common behavioural mistakes that stem from unexpected volatility. Above all else it is our deep understanding of the wider macro environment that forms the basis of our unique investment process.”

  1. Findings are based on a survey from independent research consultancy, Censuswide, conducted between 6th-10th June 2022 with a sample of 102 Professional Investors including [insert further breakdowns]. Censuswide is a member of ESOMAR – a global association and voice of the data, research and insights industry. Censuswide complies with the MRS code of conduct based on ESOMAR principles.
  2. The sample size represents a snapshot of those who view the current risk levels of the market environment to be high compared to pre-covid conditions absolute return, of 39 respondents which is lower than Censuswide’s usual minimum of 50 to ensure data resilience.

This material is for your information only and is not intended to be used by anyone other than you. It is directed at professional clients and eligible counterparties only and is not intended for retail clients. This is not an offer or solicitation with respect to the purchase or sale of any security. The material is intended only to facilitate your discussions with Fulcrum Asset Management as to the opportunities available to our clients. The given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to accuracy or completeness and it should not be relied upon as such. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon client’s investment objectives. The price and value of the investments referred to in this material and the income from them may go down as well as up and investors may not receive back the amount originally invested. Past performance is not a guide to future performance. Future returns are not guaranteed and a loss of principal may occur. It is the responsibility of any person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdiction. Fulcrum Asset Management does not provide tax advice to its clients and all investors are strongly advised to consult with their tax advisors regarding any potential investment. Opinions expressed are our current opinions as of the date. 270922 FC121W

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