View more on these topics

Old Mutual Wealth: 60/40 balanced model is ‘dead’

The way investor sentiment and habits have changed in recent years, particularly in the retirement space, means the traditional 60/40 multi-asset split is “probably dead”, Old Mutual Wealth head of investments Anthony Gillham says.

He says if you had the traditional equity/fixed income split, investors would have seen a fall in the beginning of this year.

Gillham adds: “If the old model doesn’t work, investors then need to look at alternatives. They comprise equity long-short, credit or merger arbitrage for example. We use different assets for returns and diversification. It’s important because you need to hedge against inflation and need assets for the downside risks.”

The group consists of multi-asset funds designed for different life stages, but split between accumulation and decumulation.

Old Mutual Wealth, which is made up of the group’s multi-asset portfolios, will rebrand next week after the sale of its single strategy range (currently being called Old Mutual Global Investors Single Strategy), which is headed by Richard Buxton.

It is expected to list on the London Stock Exchange on 25 June. Rebranding of the entire group’s subsidiaries will be re-branded to Quilter over the course of two years.

Recommended

Offshore amnesty could bring in 5bn

The Government’s amnesty for UK taxpayers with undisclosed offshore bank accounts could net the Treasury up to 5bn.

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Markets have been volatile but our evidenced based 60/40 portfolio delivered a positive return of 1.49% between 1 Jan 18 to 19 Jun 18.

    Maybe expensive 60/40 portfolios have had their day.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com