Is the original 60-40 strategy dead? This investing icon thinks so

Ian Macoun is the founder of Australian firm Pinnacle Investment Management. He's worked in investment for 40 years.

The days of investment portfolios being made up of 60 per cent stocks and 40 per cent fixed income are over, according to Australian investing icon Ian Macoun.

“It’s not good enough in the world that we live in now, so I believe it is dead,” the founder and managing director of ASX-listed Pinnacle Investment Management told Markets with Madison.

“I mean equities and fixed interest or bonds will always be important components of any portfolio, but they are nowhere near good enough on their own.

“Capital markets are a lot more sophisticated these days. You need a lot more arrows in your quiver.”

His firm owned significant minority stakes in 15 investing firms that focused on certain asset classes or strategies, such as going long on global stocks, investing in emerging markets, private credit, private equity and venture capital.

Pinnacle now had A$100.1 billion in assets under management across those firms.

Ian Macoun is the founder of Australian firm Pinnacle Investment Management. He's worked in investment for 40 years.

Macoun called out “inertia” among wealth management businesses that did not operate like his.

But times were changing, alongside the eruption of artificial intelligence, he said.

Watch the interview with Ian Macoun above to hear what he thinks makes an excellent investor and his lessons from 40 years of investing.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.