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Understanding objective based investing


Simon Doyle

Simon Doyle

Head of Fixed Income & Multi-Asset

Imagine that you were an investor back in the year 1900 with an investment objective to earn an average return of 5% p.a. above inflation.  You realised that this was an aggressive target so adopted a ‘growth’ biased strategy with about 60% in equities.  You also knew the value of diversification and so invested around 40% in bonds and cash.  And, as a longer term investor you decided to rebalance your strategy frequently, so held your portfolio constantly through time.

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