CPD  

What is next for the 60/40 multi-asset portfolio?

  • Understand the challenges facing investors using the 60/40 portfolio
  • Learn about the options for advisers using alternative assets
  • Understand the impact inflation will have on a multi-asset portfolio
CPD
Approx.60min
What is next for the 60/40 multi-asset portfolio?
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Introduction

Advisers seeking to create a balanced multi-asset portfolio for clients have for many years relied on combining a 60 per cent allocation to equities and 40 per cent to bonds, predicated on the notion that those asset classes move inversely to each other. 

But for a variety of reasons, since the global financial crisis, that correlation has broken down, and the relevance of the 60/40 portfolio is being called into question.

This is prompting many advisers to look at alternative assets and question how to get exposure to bond and equity markets, which both look expensive on traditional valuation metrics.

This guide will explore the options for advisers looking at constructing portfolios for a post-pandemic world.

It comes with 60 minutes of CPD 

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. In section 4, at below what credit rating do bonds become high yield?

  2. In section 2, how does Suzanne Hutchins define risk?

  3. In section 2, what does Hovenden say is his favourite way to get alternatives exposure?

  4. In section 3, What is the proportion of global equity markets made up of US equities?

  5. In section 3, which two types of stocks have benefited from low bond yields?

  6. In section 1, which type of assets does Krishnan say can replace bonds in a portfolio?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Understand the challenges facing investors using the 60/40 portfolio
  • Learn about the options for advisers using alternative assets
  • Understand the impact inflation will have on a multi-asset portfolio

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