Is 60/40 still the best investment portfolio mix for UAE investors?

Is 60/40 still the best investment portfolio mix for UAE investors?

Dubai: Once a mainstay for investors, the 60/40 portfolio no longer appears to be keeping up with today’s market environment, a top UAE investment banker has said. For many years, financial planners and investors crafted portfolios composed of 60 per cent equities and 40 per cent bonds or other fixed-income offerings. However, according to Maurice Gravier, the Chief Investment Officer at Emirates NBD Group, investors must integrate more asset classes into their portfolio in an uncertain market instead of going by the traditional 60/40 approach. “I am not saying that 60/40 is dead. But the last year was terrible, and the return of inflation means bad news for every asset class, bonds and stocks.” He explained: “It is better to get returns from different sources and have more regional diversification, including cash and alternatives.” Gravier said: “We are working on adding more hedge funds to our platform, and it works for gold as well. Gold behaves differently from the rest and real estate to some extent.” Gravier spoke to Gulf News at the sidelines of the unveiling of the Emirates NBD Group’s Global Investment Outlook for 2023. The annual Emirates NBD CIO Outlook is an advisory blueprint covering investment opportunities,