Respondents cited diversification, ability to invest opportunistically
NEW YORK, NY, August 17, 2023 /24-7PressRelease/ — More than half of US registered investment advisors and wealth managers responding to a survey by Fulcrum Asset Management plan to boost client allocations to global macro over the next 12 months. In addition to the 56% who said they plan to increase global macro allocations or begin allocating to the strategy in the coming year, a further 12% said they were considering doing so.
Survey participants cited global macro’s diversification benefits and ability to take quick advantage of macro events among the chief advantages of the strategy, with two-thirds indicating that macro has become more relevant in the context of greater market volatility in recent years.
That’s not to say, however, that all fans of global macro are bearish: four out of five of the respondents who indicated they are optimistic about the investment outlook going forward still said they believe the strategy will be more relevant to their portfolios in the coming year. That may be a response to the down year for both equities and bonds in 2022, as nearly three quarters of the respondents who said global macro was more relevant said it was due to the risks of an all stock and bond portfolio that were exposed last year.
“With the reemergence of volatility and the disappointing returns of the traditional 60/40 [equities/bonds] portfolio last year, there is palpable excitement around macro investment among professional investors in the U.S. right now,” said Paul Seaton, head of North America for Fulcrum. “Our U.S. team is actively engaged with advisors who are coming to appreciate the role of global macro as a portfolio diversifier.”
Respondents were asked to name three factors they expect to drive asset markets over the next year and 36% included inflation, 28% recession and 27% climate/Environmental, Social, Governance (ESG) factors. Among the tail risks weighing on investors’ minds, they cited political gridlock in the US, the potential emergence of a more severe Covid variant and possible escalation of Russia’s war on Ukraine or a similar geopolitical crisis as the top three.
Findings were based on a survey from independent research consultancy, Censuswide, conducted between May 30 and June 6, with a sample of 205 Professional Investors (breakdown: 105 respondents in the UK and 100 respondents in the US). Censuswide is a member of European Society for Opinion and Market Research (ESOMAR) and complies with the Market Research Society (MRS) code of conduct based on ESOMAR principles.
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 strategies offer transparency, liquidity and competitive fee structures.
Founded in 2004, the firm manages £4.9bn / USD$6.3bn* on behalf of a global client base including institutions and wealth managers. Fulcrum is a signatory to the United Nations Principles of Responsible Investment (UNPRI) along with a number of significant organisations across the globe that embrace sustainability as part of their core objective.
*AUM as of 07/31/23
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