Gain clarity for your allocation strategy no matter where you stand
Economic data and macro narratives have been driving significant performance differences across asset classes. How you look at the world and where you think the economy will evolve has a sizable impact on your allocation decisions. You probably have a view, but are you seeing a path forward? For greater clarity, our Portfolio Analysis & Consulting Team follows a proprietary methodology called Cyclicality vs. Inflation Analysis. It provides a different perspective on allocation by scoring portfolio exposure to specific asset classes, sectors, and industries that are likely to perform best in specific economic environments.
Explore which sectors tend to outperform during different macro environments
Growth stays resilient but inflation remains sticky
Fixed income: Spreads compress, Treasury yields rise
- Bank Loans
- High Yield Corporates
Equity: Favors cyclical sectors
- Financials
- Industrials
- Materials
- Energy
Growth slows and inflation comes under control
Fixed income: Spreads expand, Treasury yields fall
- Intermediate and Long-Term Treasuries
- Agency MBS
- Municipal Bonds
Equity: Favors defensive growth sectors
- Communication Services
- Health Care
Growth stays resilient and inflation remains sticky
Fixed income: Spreads expand, Treasury yields rise
- Short-Term Treasuries
- Money Market
Equity: Favors defensive sectors
- Real Estate
- Utilities
- Consumer Staples
- Health Care
What style boxes can’t tell you
Adding exposures that align with your outlook may help build a more resilient portfolio. Conversely, if you have holdings concentrated in a scenario you don’t expect to occur, you may want to consider some reallocation options. This proprietary methodology was developed and vetted by a 10-member Investment Committee at Natixis Investment Managers Solutions. It’s the same institutional-quality analysis applied to the model portfolios it manages on behalf of some of the world’s largest wealth managers.
Portfolio evaluation: How does yours stack up?
Why not schedule an objective portfolio evaluation with a member of our experienced Portfolio Analysis and Consulting Team? They use sophisticated diagnostic tools to help identify diversification and yield opportunities and stress test your portfolio for numerous macro scenarios using their proprietary methodology. Call 800-862-4863 to set up an evaluation, or contact us.
Practical applications for your portfolio
Model portfolios
If you prefer to make all allocation decisions, diversifying your portfolio’s exposure across growth and cyclical sectors in equities and multiple sectors of fixed income markets may be a smart approach.
Allocation insight
Stress test your portfolio
This material is provided for informational purposes only and should not be construed as investment advice.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.
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