An interesting conundrum for asset allocators

Need for diverse portfolio return drivers

clock • 2 min read

Following the Q4 2018 sell-off, when the traditional 60/40 portfolio lost 6.5% in GBP terms, the same allocation is now up 15.2% year-to-date (to end of August 2019).

For portfolio managers, this makes positioning for H2 2019 an interesting conundrum.  Whether investor positioning enabled them to miss out or capture the year-to-date rally, the same challenge of protecting current year gains, while balancing the fear of missing out on the potential for a further rally, exists.  Questions related to the longevity of the ten-plus-year equity rally will continue to be front and centre of their asset allocation choices with the slowing of global growth impacting sentiment and positioning.  Looking at European ETP flows as a pulse of investors' risk a...

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