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

Advisers have opportunity to deepen private market engagement

Advisers have opportunity to deepen private market engagement

Most client allocations to private markets are either 5%-10% or 1%-5%

Isabel Baxter
clock 18 November 2024 • 2 min read
Royal London cuts number of governed range portfolios

Royal London cuts number of governed range portfolios

Renaming remaining portfolios to reflect level of investment risk

Jenna Brown
clock 18 November 2024 • 1 min read
AJ Bell cuts fees across multi-asset income range

AJ Bell cuts fees across multi-asset income range

£1.5bn of inflows this year

Beth Brearley
clock 14 November 2024 • 1 min read