Time to rethink asset allocation: Russell

While equities and fixed income will continue to play a critical role in investment portfolios, political and economic ambiguities mean investors need to look to non-traditional asset classes if they’re to achieve their objectives, according the latest latest research published by Russell Investments Canada.

Read: Vik’s pick: Investors misguided about Russia

The research suggests broader diversification comes in three ways:

1) Improving the global macro focus by adding exposure to global and emerging markets equities.

2) Fixed income exposure should become considerably more global with the inclusion of emerging markets debt and global high yield bonds.

3) “Real assets” such as global infrastructure, global real estate and commodities provide additional sources of income, diversification and potential inflation protection.

Also read:

Add alternatives to client portfolios

Understanding PE and infrastructure alternatives

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.