The Global Opportunities Trust is built on a very different premise to the traditional multi-asset approach. Where most diversified portfolios rely on fixed blends of equities and bonds, this trust moves according to where value and risk are most attractively aligned. Alan Bartlett, one of its managers at Goodhart Partners, makes the case that sticking to old models is no longer sufficient.
The standard 60/40 portfolio, and its many variants, are built on assumptions that may no longer hold, particularly the belief that equities and bonds will reliably offset one another in times of stress. With inflation more persistent and rates behaving less predictably, the relationship between asset classes has become more fragile. Diversification, in the traditional sense, may not be delivering the protection investors assume it does.
Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
