81% of investors believe global macroeconomic factors important in portfolio construction; 72% allocating more or starting to think about allocating to macro strategies
LONDON, ENGLAND, July 20, 2023 /24-7PressRelease/ — Nearly two thirds of professional investors surveyed (64%) say macro investing has become more relevant, given the significant financial market turmoil of the past few years. The findings come from new research from Fulcrum Asset Management (1).
Of those who believed in the increased relevance of macro investing, 77% said that this was due to the fact that 2022 had shown the risks inherent in a portfolio concentrated in equities and bonds.
Global macroeconomic factors were cited as ‘important’ (2) by 81% of surveyed professional investors, when constructing or adjusting their portfolio and 72% of investors surveyed said that they were either allocating more (58%) or were maybe starting to think about allocating more (14%) to diversified strategies, such as global macro, over the next 12 months.
When asked the reasons why global macro investment strategies might be beneficial to asset allocation, most respondents (56%) attributed it to their opportunistic nature, namely the fact they can take quick advantage of macro events. This was closely followed by their diversification benefits (51%) which was probably due their low correlation to equities and bonds. Almost half (45%) also saw the benefit of such a strategy as a counter to financial and political shocks. Around 1% saw no benefits to the strategy and suggested they could lead to ‘knee-jerk’ decisions.
Over four in ten (44%) described macro investment strategies as having become mainstream, while nearly a third say it is not always clear what is in them, and 28% describe them as “still a bit of an enigma.”
Joe Davidson, Managing Partner at Fulcrum Asset Management said: “The results of our survey demonstrate that the economic twists and turns of the past few years have well and truly left their mark as they have repeatedly upended expectations. It has become clear that as a result, investors are looking to bolster their portfolios, with nearly three-quarters of those surveyed stating that they were either allocating more, or starting to think about allocating to diversified strategies such as global macro, over the next 12 months.”
“As a global house, with macro investing forming the backbone of our investment success, it was interesting to see the outcome of this survey.”
Fulcrum has a global client base with £4.6bn / USD $5.8* bn of funds under management across Global Macro, Risk Premia, Thematic Equities, Alternative Solutions, and Climate-aligned Investing.
About Fulcrum Asset Management (LLP)
Fulcrum Asset Management specialises in managing a range of macro-oriented investment products, with the objective of delivering positive returns irrespective of market conditions. Fulcrum’s highly innovative investment approach employs both discretionary and systematic inputs that are supported by extensive in-house research. Being unconstrained by benchmarks, Fulcrum provides investment solutions with the ability to align products with a client’s specific risk appetite. All of our strategies offer transparency, liquidity and competitive fee structures.
Founded in 2004, the firm manages £4.6bn / USD$5.8* bn on behalf of a global client base including institutions and wealth managers. Fulcrum is a signatory to the UNPRI along with a number of significant organisations across the global that embrace sustainability as part of their core objective.
*As at 30 June 2023
(1) Findings are based on a survey from independent research consultancy, Censuswide, conducted between 30.05.23-06.06.23 with a sample of 205 Professional Investors (breakdown: 105 respondents in the UK and 100 respondents in the US.) Censuswide is a member of ESOMAR – a global association and voice of the data, research and insights industry. Censuswide complies with the MRS code of conduct based on ESOMAR principles.
(2) ‘Important’ is a combination of Very important and Somewhat important answers.
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