Asset Allocation for Tomorrow’s World

The most important investment decision for affluent individuals and their families.

Asset Allocation

  • Are you uncertain about the performance and security of your investment portfolio and its ability to support your family’s needs post-retirement?
  • Are you considering diversifying more of your assets into private equity, infrastructure and real estate (which generally are more difficult to understand, and have limited liquidity and expensive valuations, particularly relative to what is available in the public markets)?

2021 Economic Outlook

  • Does your portfolio consist of a high proportion of bonds (even though this fixed-income instrument no longer provides the level of secure income and capital safety that it used to)?
  • Is gold a part of your current investment portfolio (though it offers no current income and is vulnerable to price speculation)?

Investment Strategy

  • Would your investment portfolio benefit from being adjusted so it is better structured and more specialized for the recovering economy – tailored to your portfolio size, income requirement, and risk tolerance?

Our Investment Strategy in 2021

Capitalize on
The Asset Recovery

 

As life returns to normal, we expect that stocks invested in the “real economy” (such as transportation, materials, and oil & gas, to name a few) will rebound. Letko Brosseau’s “real economy” stocks are currently trading at 10.4x 2022 earnings, a 38% discount when compared to the MSCI World Index.

Source: Bloomberg and LBA calculations as of January 31, 2021, Letko Brosseau International Equity Fund

Capture Secular Forces &
Long Term Trends

 

We invest in stock categories that are expected to continue to rise in tandem with long-term trends. These sectors include artificial intelligence, the internet of things, automation, infrastructure needs in the developing world, and the aging population.

Structural Growth in
Emerging Markets

 

Over 85% of the world’s population lives in emerging markets where the level of unmet needs is tremendous (as is the potential for great returns) in areas such as health care, infrastructure, utilities, and more. Over the past ten years, emerging markets have been growing at 3x the rate of developed markets. As it has done for more than 20 years, Letko Brosseau will continue to be actively involved in emerging markets.

Avoid Asset
Bubbles

 

Letko Brosseau will continue to optimize its clients’ portfolios while avoiding investments that have a disproportionately high yield and risk profile, a lack of transparency, and low liquidity.

Do you have questions about your investment strategy and asset allocation?

Start a conversation with one of our Directors, Investment Services, a Letko Brosseau Partner who is experienced at working with high net worth private clients.