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.

Disclaimer
This material is for your information only and is not intended to be used by anyone other than you. It is directed at professional clients and eligible counterparties only and is not intended for retail clients. This is not an offer or solicitation with respect to the purchase or sale of any security. The material is intended only to facilitate your discussions with Fulcrum Asset Management as to the opportunities available to our clients. The given material is subject to change and, although based upon information which we consider reliable, it is not guaranteed as to accuracy or completeness and it should not be relied upon as such. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon client’s investment objectives. The price and value of the investments referred to in this material and the income from them may go down as well as up and investors may not receive back the amount originally invested. Past performance is not a guide to future performance. Future returns are not guaranteed and a loss of principal may occur.

It is the responsibility of any person or persons in possession of this material to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdiction. Fulcrum Asset Management does not provide tax advice to its clients and all investors are strongly advised to consult with their tax advisors regarding any potential investment. Opinions expressed are our current opinions as of the date appearing on this material only. Any historical price(s) or value(s) are also only as of the date indicated. We will endeavor to update on a reasonable basis the information discussed in this material.

References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time (“benchmarks”) are provided by Fulcrum Asset Management for your information purposes only. Investors cannot invest directly in indices. Indices are typically unmanaged and the figures for the indices shown herein do not reflect any investment management fees or transaction expenses. Fulcrum Asset Management does not give any commitment or undertaking that the performance or risk profile of your account(s) will equal, exceed or track any benchmark. The composition of the benchmark may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time.

Simulated, modeled, or hypothetical performance results may be used and have certain inherent limitations. Simulated results are hypothetical and do not represent actual trading, and thus may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision-making. Simulated results are also achieved through retroactive application of a model designed with the benefit of hindsight. No representation is being made that any client will or is likely to achieve results similar to those shown.

Certain funds managed by Fulcrum Asset Management LLP use quantitative models, where this is the case, Fulcrum Asset Management LLP can and do make discretionary decisions on a frequent basis and reserves the right to do so at any point.

Certain transactions, including those involving futures, options and high yield securities and investments in emerging markets may give rise to substantial risk and may not be suitable for all investors. Foreign currency denominated investments are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, the investment; such investments are also subject to the possible imposition of exchange control regulations or other laws or restrictions applicable to such investments. Investments referred to in this material are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. Investors should consider whether an investment is suitable for their particular circumstances and seek advice from their investment adviser.

This material has been approved for issue in the United Kingdom solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Fulcrum Asset Management (“Fulcrum”), Marble Arch House, 66 Seymour Street, London W1H 5BT.

Fulcrum Asset Management LLP is authorised and regulated by the Financial Conduct Authority (No: 230683). © 2023 Fulcrum Asset Management LLP. All rights reserved.

—
For the original version of this press release, please visit 24-7PressRelease.com here