Higher for longer: A 'helpful development' for multi-asset but tactical allocation will be key

Risk management ‘more important’ than ever

The messaging from central banks over the last few months has been similar on both sides of the Atlantic: interest rates will remain high for longer in the fight against stubborn inflation, and multi-asset funds have been able to weather the ripples it sent across markets by having more tools at their disposition.

In the penultimate instalment of Investment Week's 'Higher for longer' series, which examines the effect persistently higher interest rates are set to force on various corners of the market, we dive into multi-asset, an investment style which feels the impact across the majority of assets. Back in September, the Federal Reserve, the Bank of England and the European Central Bank opted to hold rates, a move the ECB continued yesterday (26 October). Appetite for bonds not abating in face of 'exaggerated' 5% Treasury yields While central banks are prioritising bringing inflation down t...