Over the past few years, the dramatic financial market developments have led fund managers to review their approach to portfolio management.
Ultra-low interest rates have decimated returns from bonds and cash and, together with record fiscal stimulus, have pushed asset prices into bubble territory. A lack of viable investment options and the threat of a severe market shock have necessitated a rethink. Portfolio management in 2021 calls for an integrated mindset that enhances decision making, seeks alternative ways to achieve income and returns, and more effectively manages downside risk.
The challenge has inspired the use of the Total Portfolio Approach within retail investments and super – a method that has been deployed successfully by institutional investors for decades.