Natixis Investment Managers Solutions portfolio consultants monitor asset classes, investment products and market action, both in real time and from a historical perspective. See which trends influenced financial advisors’ asset allocation decisions in their moderate model portfolios as 2022 drew to a close.
#1 – Value stocks and short duration bonds drove top quartile performance
Comparing the asset allocations of 1st and 2nd quartile portfolios would lead you to conclude their return and risk profiles should be similar. In fact, the top quartile portfolios outperformed by 5% with a 3.5% lower drawdown, which we found interesting. Further investigation showed that the top quartile portfolios had a bias towards value stocks and shorter duration bonds, which were both outperformers in 2022.