Letting markets dictate asset allocation like using 'a blunt tool'

RSMR Investment Conference - multi-asset panel

Victoria McKeever
clock • 3 min read

Passive investment clearly has its place in portfolio construction but is like a "blunt instrument" if used in isolation, Goldman Sachs Asset Management (GSAM) portfolio manager David Copsey has warned.

Copsey was participating in a multi-asset panel discussion at the 2016 RSMR Investment Conference, where the discussion focused on whether asset allocation was still 'king' and the relative merits of active and passive investment - an issue that has resurfaced following the publication of the Asset Management Market Study by the Financial Conduct Authority (FCA). On the role of passive vehicles in a portfolio, Copsey said: "To claim you are managing risk in a holistic portfolio and yet allow the markets to dictate how much you are going to hold of something - that is somewhat difficult. ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

The wonder women from Fundcalibre's rated funds list

The wonder women from Fundcalibre's rated funds list

'These two top-rated women have been quietly delivering for investors for the long term'

Darius McDermott
clock 06 March 2025 • 5 min read
Schroders AUM reaches £779bn as profits rise 14%

Schroders AUM reaches £779bn as profits rise 14%

Firm gives strategy update in full year results

Sorin Dojan
clock 06 March 2025 • 2 min read
Advisers 'can't ignore ESG anymore': Aegon's Beacham

Advisers 'can't ignore ESG anymore': Aegon's Beacham

‘Encouraging ESG investing no longer a difficult task for advisers’

Sahar Nazir
clock 05 March 2025 • 1 min read