Young Fundpicker: Higher expected returns offer hope for multi-asset investors

'2022 has felt relentless'

The past year has been one to forget for multi-asset investors as asset classes fell together, punishing everyone including the most conservatively invested.

Yet the pain of the past year has created a powerful opportunity for multi-asset investment in the year ahead. For the first time in a decade, the expected returns of assets from across the risk spectrum are meaningful, with government bonds offering real returns over normal inflation rates for the first time since before the global financial crisis. Preparing portfolios to harness these higher expected returns has been acutely challenging. The bear market of 2022 has felt relentless, and investors are mindful that the likely oncoming recession will take time to shake. Gone are ...