Investment strategy December 2015

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ABN AMRO Private Banking, Facts and figures, ABN AMRO Research App, app

The investment strategy of ABN AMRO Private Banking is aimed at providing stable future returns. The asset allocation, as determined by the Global Investment Committee, remains tilted in favour of equities with a cautious stance toward bonds. Alternative investments, consisting of hedge funds and commodities, add diversification and return potential in volatile markets.

  • The unfolding recovery in the US and Europe and the persistence of low funding costs will drive equity returns in 2016, particularly in Europe and emerging Asia.

  • Given very low bond yields and rising rates in the US, bond markets require caution, except for a few segments, such as corporate bonds, where returns outweigh risks. The asset allocation for bonds remains underweight.

  • Hedge funds and commodities, which can provide diversification in volatile markets, are overweight.

  • Real estate is underweight, except in the most aggressive investor portfolio profile, where a small portion of the equities allocation was shifted into real estate to reduce equity risk.

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