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Key takeaways from our recent Nashville investment forum:
We recently had the pleasure of hosting 75 clients representing some of our biggest Custom Model Solutions relationships for a two-day investment forum in Nashville.
I got to enjoy “Music City” during CMA Fest, and the din of the stages and the energy in the city made for a lively backdrop for a session I hosted on the biggest client investment questions. We had polled clients before they arrived so that I didn’t have to face live fire completely unprepared in my session!
The results of that poll, and the flow of discussion on the day and around the event continue to resonate in the current environment – so I share them for you below.
The enduring power of diversification
Diversifiers were, by far, the most prominent topic in responses, with a significant 34% of clients highlighting their importance. ”Diversifiers” may include a range of assets – bonds, liquid alts, bitcoin, and private alts were all specifically called out – but the driver of concern remains the same.
To me, this isn’t surprising as clients have been laser-focused on diversification in their portfolios particularly since 2022. But it helps to look at market performance this year.
As we approach half time on 2025 – the S&P 500 has returned 6.2%, the Bloomberg Universal Bond Index has returned 4.1%, but a more globally diversified and actively managed 60/40 portfolio, represented by the BlackRock 60/40 Target Allocation Fund (BIGPX) has returned 7.4%. Investors have also benefitted from including additional “diversifiers” like bitcoin, gold, and liquid alternative in portfolios.
Simply put: diversification has worked. In today’s dynamic environment, a well-diversified portfolio, incorporating a range of asset classes, remains crucial for navigating market fluctuations and achieving long-term goals.
Year-to-date returns (1/1/2025-6/30/2025)
