Multi-asset strategy proves right for APAC traders
A growing number of traders across the Asia Pacific region (APAC), who saw improvement in their portfolios, have evolved their trading approach from a single asset class to multiple asset classes and products as the foundation for their wealth management strategies, according to the investment specialist.
Saxo Capital Markets' study "The exponential benefits of multi-asset and multi-product trading" found that those clients experienced a 26 per cent improvement in their overall profitability and those who went from two asset classes to three asset classes saw a further 28 per cent improvement.
At the same time, clients who decided to switch from three to four asset classes saw an additional seven per cent improvement in their overall profitability, the study showed.
Additionally, according to Saxo, this trend proved to be a ‘necessary evolution" for Australian traders, given the predicted low returns investors faced worldwide, and where more diversified portolios were expected to achieve superior returns over time.
Saxo Capital Markets Australia chief executive, Ben Smoker, noted that with a low interest rate environment becoming the ‘new normal', traders needed to explore new ways to achieve returns.
"Evolving active portfolios from a single asset class to multi-asset classes and multi-product exposures remains one of the best options available for today's traders to build a retirement nest egg for the future," he said.
"The benefit of spreading exposures across multiple asset classes and products is a well-accepted mantra in investment circles and our study shows diversification in active trading strategies can spur significant capital growth for traders across the APAC region."
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