Key investment themes for 2023

AS we move into a new year, we believe the heightened volatility across asset classes that was a feature last year could continue. But with volatility comes opportunities for active management. 

We believe we will see interest in bonds continue to grow, a revival in the fortunes of 60/40 portfolio strategies, and renewed recognition of the value of multi-asset strategies. The rise in real yields is offering a new range of possibilities in government bonds and credits alike. As for equities, taking into account differences in equity risk premia, we expect markets with lower valuations will perform better than US large caps.

Private assets will remain an integral part of a multi-asset strategy. The relative drop in valuations means the next couple of years could be good “vintages” for early investors with long investment horizons.