Thorman: only a brave adviser uses tactical asset allocation

Speaking at the Defaqto DFM conference on Tuesday, Thorman said it would be a "brave move" to contradict risk profiling tools recommending balanced portfolios without the safety net of a DFM. "Most advisers agree that bonds at the moment - whether sovereign or corporate - are priced high, and the next movement will be down," he said. "But your risk tool will tell you that you need to have a chunky amount of a client's portfolio in bonds. Only a DFM can take a brave step and veer away from that. Some of you will [tactically allocate], and I'm sure it will have to be very well documente...