Defined Benefit

The role of multi-asset in a low yield environment

As a result of years of quantitative easing, government bonds now look very expensive; a third of them are even trading at negative yields. So where can investors look in the pursuit of positive yield?


Johanna Kyrklund

Johanna Kyrklund

Global Head of Multi-Asset Investments

Multi-asset investing can help in a number of ways:

  • A dynamic approach to asset allocation, focusing on areas where there is still value to be found such as emerging market currencies or value stocks
  • Judicious use of derivatives, allowing portfolio managers to take advantage of a factor based approach to investment
  • Identifying relative value opportunities that are relatively uncorrelated with overall market direction, thus protecting against some of the risk scenarios we foresee