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Alternative Market Briefing

U.S. and Latin America portfolios were best performers in 2017 as allocations to alternatives fell to a multi-year low

Friday, March 23, 2018

Komfie Manalo, Opalesque Asia:

A study by asset management firm Natixis Investment Managers has shown that US and Latin American investors fared better than their global peers last year, reporting higher performance from their portfolios.

In a study titled "Global Portfolio Barometer," investors from both regions were boosted by overweight allocations to U.S. growth stocks and higher international exposures in both stocks and bonds, moderate risk portfolios in the U.S. returned 14.7% on average. The returns outperformed similar portfolios in eight other international regions included in the study.

"Currency was a major source of risk and for some investors excess returns in portfolios, while many investors were unaware of how much they were taking when investing internationally," said Marina Gross, executive vice president of Natixis' Portfolio Research and Consulting Group.

She added, "We continued to see overall risk in portfolios fall throughout 2017. However, we believe that real risk going forward has been understated using recent historical data, and with the return of volatility in 2018, investors may want to increase risk-mitigating investments to reduce market exposure and find diversified sources of return."

Gross said that the study analyzed model portfolio performance drivers and asset alloc......................

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