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Investment Solutions Forum 2019 SG - Exclusive Insights - Mehak Dua

Mehak Dua of GMO

Jun 17, 2019

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1. Can investors look to make money via a multi asset strategy as volatility / market uncertainty increases?

Video transcript

1. Can investors look to make money via a multi asset strategy as volatility / market uncertainty increases?

Making money in multi-assets is certainly more difficult today. It requires more patience. If you ask the investment team at GMO it requires a slightly longer term horizon. At GMO, we use our seven year asset forecast to determine the fair value of different asset classes and based on that, we design a multi asset portfolio. Today, we have a 40% allocation to equities, we have a 30% allocation to alternatives, some fixed income, mostly US tips, and then some cash in the portfolio. Within our equity valuation, we hold no US equities. We hold 25% emerging market equities. That's testament to the fact that our approach to multi-asset investing is often contrarian. It is value based, and it often plays out over the longer term. Indeed, our multi-asset strategy has delivered returns that have been in excess of the equity market over the long term, and with lower volatility than the equity market