T Bailey

Investment Process

Step 2. Tactical asset allocation - further detail

The following chart highlights which asset classes have produced stronger or weaker returns over a particular year. This shows the need to constantly monitor and review allocations.

Best
1999200020012002200320042005200620072008
Worst

Global equities

Commodities

Hedge funds

UK equities

UK property

Cash (sterling)

UK bonds

Global bonds

Source: T. Bailey, Lipper Hindsight. Sterling terms.

Over the long-term different asset classes enjoy periods of both strong and weak relative performance - for long-term investments it is important to retain flexibility to adjust asset allocation



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