The survey states that by introducing global exposure to their bond portfolios, investors would have generated stronger returns over the last 10 years than they would have achieved from a portfolio of US government bonds alone.
Some of the developing markets are anticipated to provide highly attractive opportunities to US-based investors in the years ahead, while a number of developed world markets are expected to face some significant structural (debt-related) challenges.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
A single portfolio vs. a segmented fund-of-funds approach is believed to allow the manager to be aware of all the investment risks in the portfolio, as well as to compare the relative attractiveness of different regions, sectors, and asset classes in a dispassionate and timely manner not always available to the specialist manager.
Paul Markham, global equity portfolio manager at Newton remarked, "A global investment manager typically has real-time flexibility in asset allocation. If market conditions change, the active global manager can make asset allocation adjustments immediately on behalf of a client.
"In hindsight of the recent past, the argument for a US domestic approach has appeared to be strengthened as US equities have done well in a highly uncertain environment. However, in studying a global approach over a longer timeframe, we conclude that a US domestic focus is inappropriate in terms of managing/harnessing risk.
"We believe a multi-asset approach enables a full realization of the benefits of a global investment perspective," Markham concluded.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
