and “endangered” over the past year, as rising inflation hit the value of both shares and bonds at the same time, in a rare occurrence.
“You can actually see value in bonds,” Mr Randall said. “You’re actually getting paid to own bonds, you’re getting paid in term deposits and fixed income instruments.” Victor Smorgon Group, a high-profile family office, is even more bullish on alternatives, with an allocation upwards of 25 per cent. The group’s chief executive, Peter Edwards, said 60/40 may work for some conventional investment firms that want to ensure they’re “staying with the pack” and in a “comfortable position”.
Financial adviser Travis Schindler, a partner at Hewison Private Wealth, agreed that investors should consider unique asset classes beyond stocks and bonds, describing the 60/40 approach as “outdated”. He has advised some clients to invest in “secured first mortgages”, for example, which share characteristics with both alternatives and fixed income.“It’s hard to know what the 12 months ahead will look like,” he said.