2023: Another momentous year for marketsSoaring interest rates, global inflation and bond yields are all evidence of a reversal from the years of low interest rates, benign inflation and quantitative easing. With the significant geopolitical uncertainties in the Middle East as well, we have made some adjustments to the SAA within portfolios.
So, what specifically has changed this year?
- Developed market yields have reached levels not seen since 2007, with US 10-year treasuries reaching 5% in October
- Interest rates have spiked over the past 12 months to 22-year highs for the US, and Europe and 15-year highs in the UK
- Core inflation remains sticky across developed markets, despite signs it is now on a downward trajectory.
- A resurgence in energy prices created by recent geopolitical events could further delay returns to target inflation levels
What are we changing and why now?Markets are evolving and we need to be able to react to this which may lead us to review our portfolio positions more regularly, ensuring underlying holdings are best placed to capitalise on valuation opportunities while managing risk levels to ensure the right outcomes for clients.
Summarised below are key changes applied to the asset mix across our range of funds.
Find out more.