Investment managers and advisers need to make sure that clients’ portfolios are able to adapt to a world fraught with risks.

This is the view of two managers at active fund manager Pimco, who believe that traditional portfolio structures, which often rely on putting passive strategies together, are less flexible and resilient when it comes to mitigating risk.

Marc Seidner, chief investment officer for non-traditional strategies, and Pramol Dhawan, head of emerging markets portfolio management at Pimco, said: “This a world that rewards the adaptive and penalises the rigid.

“Flexibility isn’t just a feature of good portfolio construction today. It is the strategy.”

They said: “Passive investment strategies were well-suited to a…