Avoiding behavioural traps in asset allocation

Trevor Greetham, Head of Multi Asset, discusses the importance of avoiding behavioural traps in asset allocation in order to deliver added value in a repeatable and risk-controlled way.

Active management was never meant to be easy. We can’t all outperform and behavioural traps lie around every corner. Tactical asset allocation, in particular, is often set up to fail, in my view, with a small number of big decisions, made infrequently by a committee of senior people with limited individual accountability.

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For professional investors only.  This material is not suitable for a retail audience. Capital at risk. This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.