Macro investing has become more relevant with the market turmoil in the past few years, said nearly two-thirds of investors surveyed by Fulcrum Asset Management.
Of the 64% of respondents, 77% said the increased relevance of macro investing was due to the risks inherent in a portfolio concentrated in equities and bonds, as seen last year.
Global macroeconomic factors were cited as “important” by 81% of surveyed investors when constructing or adjusting their portfolios. Additionally, 72% of respondents said they were either allocating more (58%) or maybe starting to think about allocating more (14%) to diversified strategies, such as global macro, over the next 12 months.
The top reason for choosing global macro investment strategies for asset allocation was their ability to take quick advantage of macro events, said most respondents (56%). This reason was followed by their diversification benefits (51%). Almost half (45%) also saw the strategy as a counter to financial and political shocks.
About 44% described macro investment strategies as having become mainstream, while almost 33% considered it unclear to them. About 28% of respondents describe them as “still a bit of an enigma.”
Referring to the “economic twists and turns” of the recent past, Joe Davidson, managing partner at Fulcrum Asset Management, said: “Investors are looking to bolster their portfolios, with nearly three-quarters of those surveyed stating that they were either allocating more or starting to think about allocating to diversified strategies such as global macro, over the next 12 months.”
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