Multi-asset more profitable: Saxo Capital Markets

Portfolios using multi-asset trading strategies are more profitable than those employing single-asset trading strategies, a study by Saxo Capital Markets has found.

Multi-asset more profitable: Saxo Capital Markets

Killian Plastow

Last Updated: 16 December 2016 Published: 16 December 2016

Looking at monthly performance figures for client portfolios trading leveraged securities, the company found traders that moved from one asset class to two saw a 26 per cent improvement in profitability, with traders increasing from two assets to three seeing a 28 per cent improvement.

"With a low interest rate environment becoming the 'new normal', traders need to explore new ways to achieve returns whilst still managing risk," said Saxo Capital Markets chief executive Ben Smoker.

"Evolving active portfolios from a single asset class to multi-asset classes and multi-product exposures remains one of the best options available for today's traders to build a retirement nest egg for the future."

Mr Smoker added that diversified portfolios typically offered better returns than those with a concentrated or singular asset allocation.

"The benefit of spreading exposures across multiple asset classes and products is a well-accepted mantra in investment circles and our study shows diversification in active trading strategies can spur significant capital growth for traders across the APAC region," he said.