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?
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