Reimagining asset allocation:
A balanced macro approach

Key takeaways:

• The evolving inflationary environment and shifting geopolitical dynamics present structural challenges to the long-standing efficacy of the 60/40 portfolio model
• Our new balanced macro portfolio is specifically designed to deliver risk-adjusted returns across all diverse macroeconomic regimes
• Regional and sustainability integrated (SI) variants can be easily tested within the balanced macro framework

Points of differentiation:

• Multi-asset allocation: The strategy goes beyond traditional asset mixes, offering true multi-asset allocation that enhances diversification and smooths drawdowns
• Flexibility: The framework allows for easy customisation to align with investors and clients' preferences
• Resilience and consistency: Rigorously designed and tested across a range of macroeconomic environments, the approach demonstrates resilience and consistency in varied market conditions

What does our research mean for investors?

Our analysis highlights that the strong performance of the traditional 60/40 portfolio over the past two decades was largely contingent on a unique combination of low inflation, stable growth, and geopolitical calm — conditions that are now rapidly evolving. We offer a more balanced alternative capable of steady risk-adjusted performance across regimes, therefore helping investors to insulate their portfolios from macro shocks.