Natixis Global Asset Management research suggests French model portfolios made best returns in 2015

Results fuelled by large holdings of outperforming European equities and preference for effective risk-managed products.

Natixis Global Asset Management (Natixis Global AM) has today published the first annual edition of its Global Portfolio Barometer, offering insights into model portfolios across the world and the asset allocation decisions made throughout 2015.

The analysis was carried out by Natixis’ in-house Portfolio Research and Consulting Group, which reviewed 855 model risk-rated portfolios provided by advisers throughout the whole of 2015.

These portfolios were based in seven different locations worldwide: Singapore (13 portfolios reviewed), France (46), Italy (25), Spain (45), Latin America (12), the UK (266) and the USA (448).

Key findings include:

• The winners in 2015 were French investors, who made returns of nearly 8% in ‘moderate’ risk rated portfolios evaluated in the study
• UK investors followed in second, with returns of over 5%
• US and Latin American balanced portfolios experienced the lowest returns
• In years of disparate asset class performance, such as 2015, the experience for investors across the globe varies significantly
• Significant differences exist in the average asset allocation of a “balanced portfolio” across all countries – equities remain the core holding for balanced portfolios in Anglophone countries and Singapore, while fixed income is core for countries such as France, Spain and Italy
• Investors with similar risk tolerances may have very different portfolios depending on which country they live in

Commenting on the new research, James Beaumont, International Head of Portfolio Research & Consulting Group at Natixis Global Asset Management, said: “This research shows just how differently asset allocation is handled across the world, highlighting the importance of considering risk first, before return, in portfolio construction and reconsidering the traditional 60/40 equities/bonds approach to the balanced portfolio.”

“French investors in our study were the clear winners in 2015, benefiting from high exposure to European equity markets, which performed well, and strong manager selection in fixed income. Latin American investors lost out due to poorly performing local markets and high exposures to underperforming US markets,” said Beaumont.

Christophe Point, Managing Director of Natixis Global Asset Management Distribution for France, French-speaking Switzerland and Monaco, concludes: “The contrasted results revealed by this barometer reminds the investors of the importance of setting long-term personal goals while putting risk first when building portfolios. This approach is key to help generate diversification and return in an increasingly complex financial environment.”

Methodology
All figures, unless otherwise stated, are derived from detailed analysis conducted by the Portfolio Research & Consulting Group of 855 model portfolios across seven different locations worldwide: Singapore (13), France (46), Italy (25), Spain (45), Latin America (12), the UK266) and the USA. The data covers the 12 months from January to December 2015.

About the Portfolio Research and Consulting Group
The Portfolio Research and Consulting Group provides a free and bespoke service to advisers to help build more durable portfolios for their clients. The group uses advanced analytical capabilities derived from sophisticated, institutional grade software to help improve the way advisers create and manage their portfolios.