Elston Consulting has launched a published 60/40 Index for UK investors.
The Elston 60/40 GBP Index represents a 60% strategic allocation to Global & UK equities and a 40% allocation to predominantly UK bonds.
A “60/40” equity/bonds composite benchmark is a traditional comparator for multi-asset funds and portfolios.
However, there are no standardised views of what a 60/40 portfolio looks like. For global investors this could mean 60% Global Equities, 40% Global Bonds. For US investors, 60/40 could mean 60% US Equities, 40% US Bonds.
Elston’s 60/40 Index for UK investors provides a standardised comparator for multi-asset portfolio managers and multi-asset fund providers looking for a straightforward multi-asset benchmark.
The index is constructed using large liquid and low cost ETFs as the underlying securities so the benchmark is replicable and investable. Its performance broadly represents the returns after fees of an index portfolio invested in the strategy.
The index values are available on Bloomberg (ticker 6040GBP Index), Morningstar and other leading data vendors. The weightings scheme is available to licensees.
Henry Cobbe, Head of Research at Elston Consulting, which created the index says: “At the moment each multi-asset manager, portfolio manager or research firm creates their own internal composite for their version of 60/40. By having a publicly available benchmark for UK investors, we are enabling decision-makers make comparisons, insights and analysis in a way that is consistent, straightforward and accessible.”
ETF Investment Strategy