Andrew Morris: Why theory does not always work in practice

Property – the forgotten son?

clock • 4 min read

Be it 'risk on' or 'risk off', investor sentiment often outweighs investment theory or indeed economic reality and so, writes Andrew Morris, effective asset class diversification remains critical in portfolio construction

Last time, we looked at why significant due diligence is needed when comparing multi-asset funds, as the evidence shows different products can have wildly different characteristics - particularly from a risk perspective. The sell-off we witnessed in the first quarter of this year, however, gives us the opportunity to discuss the broad merits of multi-asset investment. This is incredibly important, as reality very rarely reflects the theory it is supposed to. For some time we have been dealing with a number of clients who are concerned about their fixed income allocations. With a synch...

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