Simply put: multi-asset investing for the recovery’s next turn

Welcome to the launch issue of the Simply put quarterly, where we provide clear insights into multi-asset investment, macro analysis and research.

This quarter, we focus on questions that have been top-of-mind for us as we seek to preserve and grow our clients’ capital:

• Is a different approach to diversification needed? Amid decelerating global growth, higher volatility, lower risk appetite and an anticipated rise in real rates, how should multi-asset investors optimise diversification?
• What’s really driving interest rates? In this cycle, we believe the rise in interest rates is being driven by higher real rates instead of an inflationary shock. Equities should perform well in this environment – but how much upside remains given their current valuations?
• Which hedges work best? To diversify sources of growth at this stage of the recovery, momentum and convexity strategies can benefit investors, in our view. We profile two bonds-based approaches used in our portfolios as a case study.

We also provide a recap of key findings from our continuous research programme, which has enabled us to significantly improve the integration of sustainability factors and exclusions in our equity and fixed-income allocations, and enhance our model for capturing bond carry.

Please look out for our shorter views on macro and market topics – from rising rates to volatility – which are also published as Simply put insights but on a more frequent basis.

For professional investor use only

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