Elston Consulting has launched a 60/40 index to enable asset allocators to compare multi-asset products.
The Elston 60/40 GBP index is split between a 60% allocation to global and UK equities and a 40% allocation to predominantly UK bonds.
The 60/40 approach has been a traditional comparator for multi-asset funds and portfolios.
The index is designed for UK investors mainly multi-asset portfolio managers looking for a simple multi-asset benchmark.
The index is constructed using ETFs as the underlying securities in order to make the benchmark replicable and investable.
Henry Cobbe (pictured), head of research at Elston Consulting, commented: “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.”
Last year, Elston unveiled a list of the best UK-listed ETFs, the Elston Top Fifty, which featured the best available ETFs for each of 50 granular exposures across all major asset classes.
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