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It’s often tempting to focus on one asset class and fall back on selection for returns and risk protection but this ignores the immense value of having a multi asset portfolio. This article illustrates this by showing how a simple blend can perform better than a pure equity fund.

March witnessed a resurgence in equity markets globally, with the ALSI rebounding strongly after February's sell-off, underscoring an optimistic outlook backed by controlled inflation, resilient economic indicators, and potential stabilisation of interest rate cycles. Despite heightened volatility in bond markets, with local bonds experiencing a substantial sell-off and yields soaring, particularly at the longer end of the curve, this turbulence has potentially unveiled attractive value opportunities going forward.

The thought of outperforming the market is every investor’s dream, but with so many managers attempting to add value through active security selection, is it possible to consistently add value? And is the source of excess returns due to stock picking skill, or may it be attributable to another external factor? We consider these ideas in this article.