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Photo: Bryan R. Smith/AFP/Getty Images

Asset managers have been moving away from fixed income and towards alternatives in recent years, looking to generate higher returns. But in 2018 the best performing portfolios were those that did just the opposite, a survey released today from investment bank Natixis found.

What it means: The top-performing quartile of portfolios had a much higher allocation to bonds than the bottom quartile and about half the alternative allocation.

  • Higher fixed income allocations contributed to better overall return, smaller drawdowns, lower expenses and lower risk, researchers said.

Details: The average portfolio in 2018 contained around 5.3% alternatives, below the recent average and even further below the all-time high in 2016 of about 7.5%. However, alternative allocation has been increasing and investors moved into alternatives heavily in the second half of the year, raising allocation from 4.2% in mid-2018 to 5.3% by the end of the year.

  • Alternatives are investments like commodities, real estate and derivatives.

Flashback: In February, a Natixis study showed stocks were the biggest driver of losses in portfolios globally, contributing around two-thirds of investors' losses.

Don't forget: A 12-month CD would have outperformed the S&P by a full 8 percentage points last year.

Go deeper: Bond yields are at historic lows around the world

Go deeper

Updated 6 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Large coronavirus outbreaks leading to high death rates — Coronavirus cases are at an all-time high ahead of Election Day — U.S. tops 88,000 COVID-19 cases, setting new single-day record.
  2. Politics: States beg for Warp Speed billions.
  3. World: Taiwan reaches a record 200 days with no local coronavirus cases.
  4. 🎧Podcast: The vaccine race turns toward nationalism.

Technical glitch in Facebook's ad tools creates political firestorm

Facebook CEO Mark Zuckerberg. Photo: SOPA Images / Contributor

Facebook said late Thursday that a mix of "technical problems" and confusion among advertisers around its new political ad ban rules caused issues affecting ad campaigns of both parties.

Why it matters: A report out Thursday morning suggested the ad tools were causing campaign ads, even those that adhered to Facebook's new rules, to be paused. Very quickly, political campaigners began asserting the tech giant was enforcing policies in a way that was biased against their campaigns.

7 hours ago - Health

States beg for Warp Speed billions

A COVID-19 drive-thru testing center yesterday at Hard Rock Stadium in Miami Gardens. Photo: David Santiago/Miami Herald via AP

Operation Warp Speed has an Achilles' heel: States need billions to distribute vaccines — and many say they don't have the cash.

Why it matters: The first emergency use authorization could come as soon as next month, but vaccines require funding for workers, shipping and handling, and for reserving spaces for vaccination sites.

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