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.”
- 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.
- 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.
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