Almost two thirds (64%) of professional investors have said that macro investing has become more relevant in light of significant financial market turmoil in the past few years, Fulcrum Asset Management research has found.

Of those who believed in the increased relevance of macro investing, 77% said this was due to the fact that 2022 showed the risk inherent in a portfolio concentrated in equities and bonds.

Global macroeconomic factors were cited as “important” by four in five (81%) of surveyed professional investors when constructing or adjusting their portfolio. Seven in 10 of the investors (72%) of the investors surveyed also said they were either allocating more (58%) or were thinking about allocating more (14%) to diversified strategies, such as global macro, over the next 12 months.

The survey by Fulcrum found that over half (56%) of the respondents attributed the opportunistic nature of macro investment as to why it might be beneficial to asset allocation, in particular the fact that they can take quick advantage of macro events.

This was closely followed by their diversification benefits (51%), which Fulcrum said is probably due to their low correlation to equity and bonds. Almost half (45%) saw the benefit as a counter to financial and political shocks, with just 1% seeing no benefits and suggesting they could lead to “knee-jerk” decisions.

Despite the interest in macro investment strategies, nearly a third of those surveyed said that it is not always clear what is in them, with 28% describing them as “a bit of an enigma”.

Managing partner at Fulcrum Asset Management, Joe Davidson, said: “The results of our survey demonstrate that the economic twists and turns of the past few years have well and truly left their mark as they have repeatedly upended expectations.

“It has become clear that as a result, investors are looking to bolster their portfolios, with nearly three-quarters of those surveyed stating that they were either allocating more, or starting to think about allocating to diversified strategies such as global macro, over the next 12 months.

“As a global house, with macro investing forming the backbone of our investment success, it was interesting to see the outcome of this survey.”

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