A high concentration of domestic stocks and bonds and exposure to underperforming emerging market equities drove US investment portfolios to the bottom of a comparison of investment portfolios from around the world, according to a pair of reports published by Natixis Global Asset Management.
The analyses show that US portfolios generated an average loss of 0.9 per cent in 2015, while portfolios from France, which topped the comparison, had an average gain of 7.6 per cent. The substantial variation between global portfolios was due to both regional differences in portfolio construction and the associated disparities in performance across international financial markets.
“The reports highlight that in today’s markets, investors are moving beyond only using traditional 60/40 portfolios and embracing alternative investments.”
The reports are based on an analysis of investment portfolios from around the world in the moderate risk category performed by Natixis Portfolio Clarity, the company’s portfolio consulting service, which has studied more than 2,600 model portfolios from financial advisors and other investment professionals over the past three years. The findings were released in the US for the first time and will be published quarterly.
“Now more than ever, investors need to understand and manage risk and have clear goals,” says John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia. “The reports highlight that in today’s markets, investors are moving beyond only using traditional 60/40 portfolios and embracing alternative investments.”