Focus Sections » OTHER FOCUS SECTIONS » ASSET ALLOCATION STRATEGIES

— Lex Zaharoff, JP Morgan Private Bank

Asset allocation strategies must account for trends, not just past performance.

For many investors, reviewing their portfolio’s asset allocation is like going for an annual health check. They know it’s the right thing to do, yet it is time consuming and potentially disruptive; as long as there are no outward symptoms, it often gets put off.

— Jana Benesova-Tuma, CSAM

A cleverly constructed bonds portfolio can deliver returns in all market conditions.

While an early resolution to the Iraq conflict has seen rising equity and bond markets, the investment outlook remains volatile due to uncertainty over the prospects for economic growth, inflation and even deflation.

Because hedge funds do not fit easily into traditional asset allocations, extra attention must be paid to creating a strategy that can make the best use of their valuable characteristics.

— Gian Luigi Pedemonte, TradingLab

The popularity of structured products is increasing fast. This is because they provide investors with exposure to market performance, coupled with a safety net. They either provide protection on the capital originally invested, or a solid coupon. When interest rates and volatility are favourable enough to allow it, they might even provide both.