Asset management is a critical factor in the success of an investment plan, especially in times of high uncertainty and market volatility.
The proper allocation of funds by investment category can maximize returns, reduce risk and enhance the long-term stability of the portfolio. Diversification, patience and careful evaluation of managers are fundamental elements for investors who want to achieve sustainable results.
At the 16th Pension Forum, presented by AON, Derry Pickford, AON’s Global Head of Asset Allocation, outlined key takeaways for asset owners. Pickford noted that receiving profits may be appropriate, but investors should not be surprised if markets continue to rally.
Performance, he said, speaking via a video link, will depend equally on luck and skill, while investors may need to be patient with managers, especially in periods when quality and value lag behind dynamic sectors, as was the case with Amazon and TMT stocks between 1999-2001.
Finally, Derry Pickford highlighted the importance of asset class diversification. While gold has performed exceptionally well, other options such as hedge funds, insurance-linked securities and private credit can deliver returns comparable to equities while adding resilience to a portfolio. This strategy, he stressed, is a critical tool for investors seeking balanced and sustainable results over the long term.
(Source: InBusinessNews)
