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Asset Allocator

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Wealth portfolios uncovered: Home bias, ESG issues and thematic fund quirks

Welcome to Asset Allocator, FT Specialist's newsletter for wealth managers, fund selectors and DFMs.

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Behind the curtain

Constructing the optimum balanced portfolio is a difficult ask nowadays. As far as DFMs are concerned, the era of 60/40 has long since been and gone, and there are also pressing questions about how equity exposures are constructed.

For fund selectors, there’s another layer to add in. Choosing the right funds to make up these allocations is often the real key to portfolio construction. But in some asset classes, even now, the right options simply aren’t available.

In our latest podcast, released today, we use figures from our asset allocation and fund selection databases to chart the latest trends in the wealth portfolio world, and take a look at some of the drivers of recent asset allocation and fund selection changes. You can listen here on Acast, here on Spotify, or here on Apple Podcasts.

We look at accusations of home bias, discuss how UK versus US equity positions are shaping up, and consider one of the hidden flaws of ESG fund selection.

We also examine a quirk that’s emerging when DFMs buy into one (or more) of the vast array of thematic funds available to them. And we explore some of the reasons behind the discrepancies in model portfolio versus multi-asset fund performance.

You can also take a listen to our previous two shows herehere or here As ever, if you like the podcast, please subscribe or follow via your preferred provider.

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