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Investors should reevaluate the role of bonds in a traditional 60/40 balanced portfolio. With today’s very low yields likely to persist, the 60/40 balanced portfolio needs to be “stretched” or redesigned, in order to mitigate the impact of low yields on overall portfolio risk and return. Investors need to make their equity allocation work harder through active management and consider new diversifiers such as long duration bonds or alternatives.

Investors are facing a "Code REDD" with reflation, election, duration and disruption all key themes. The reflation theme is favouring a rotation into more cyclical sectors, lower duration assets and lower rating bonds.

Thomas Poullaouec | 0.25 CE

Alpha still matters and an active approach can enhance portfolio returns, creating extra saving to be spent in retirement.

Thomas Poullaouec | 0.50 CE

When it comes to returns, it's true that there is no free lunch - for one person to win, another loses. But with risk, diversification offers "free drinks", albeit that the bar where these are served evolves over time because correlation is not static.

Since Q4 2014, oil prices have plunged, currency markets are at war and intraday volatility of stock indices is disturbing. A crisis mode has started. Asset allocators must mitigate risks before this next crisis inevitably hits.

Thomas Poullaouec | 0.50 CE