The second quarter of the year continued to test the resilience of many investors, and those with the traditional 60/40 equity bond portfolio had nowhere to hide from losses. The environment has been dominated by geopolitical uncertainty and rocketing inflation across the globe. Surging energy prices have played a significant part in driving inflationary figures to levels not seen for many decades and as a result global central banks have been pushing up interest rates while trying to withdraw liquidity.
Against this backdrop we continue to avoid traditional ‘safe haven’ bonds, preferring to use a diversified basket of absolute return funds. This strategy has helped drive strong performances across all of our portfolio ranges. For more information about our current asset allocation, and views on where we are seeing opportunities in markets, please read our latest Investment Spotlight.
