The traditional way of composing strategic asset allocation has changed, according to Keith Swabey, senior product specialist of multi-asset at HSBC Asset Management. With the crashes of 2008, 2011 and 2013 in mind, this could be named the “decade of intermittent crashes,” according to Swabey. “After the 2008-2009 crisis the ability to make asset allocation choices changed, as many investors and consultants no longer wanted to make this decision. As well as asset allocation choices, investment styles that had worked consistently suddenly disintegrated,” he explained. This has changed the way the bank’s clients approach strategic asset allocation, in Swabey’s view. “Whereas before clients would come to me with well thought out strategies of how much to hold in equities, bonds etcetera, now they give me an outcome and say: you tell us how to achieve this specific outcome,” he explained. “So our role has changed to a more advisory one.” This is due largely to the fact that clients are outsourcing strategic decisions to someone else nowadays, according to Swabey…
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[Source: International Adviser - Author: Karin Wasteson - March 3, 2016]
