Asset Allocators' Soapbox: Bucking the trend

Six months or so into the year, and a quick scan of the world reveals major risks ahead: Europe is in turmoil and the market is worrying about the forthcoming European stress-test results; there is potential for a US downgrade, and Her Majesty’s Treasury has decided now is the time to report on its off-balance sheet financing. If that was not enough, some asset allocators are still managing today’s risks, and therefore returns, on yesterday’s precepts. At best, their backward-looking models can only provide a starting point in a post-RDR world, in which advisers are under pressure to ass...