The fast view
- Global Multi-Asset Income (GMAI) seeks to deliver a defensive return over time, driven by an attractive resilient yield, with low volatility and low drawdowns. It therefore can be a core part of a portfolio, possibly as an alternative to fixed income.
- 2022 was a bruising year with most markets posting significant falls, but the GMAI managed to reduce much of that downside.
- Market uncertainty is likely to continue for a while, but there are pockets of opportunity. We are defensively positioned but alert to those opportunities.
- GMAI has a history of providing defensive returns with positive skew – i.e., providing more exposure to rising markets than to falling markets. This paper profiles how we have successfully managed the Fund to achieve this.
- Going forward we are optimistic about achieving our objectives. This is based on the 5.9% current yield on the portfolio which is at a recent high; current valuations of higher yielding equities; opportunities in both developed and emerging market bonds; and faith in our bespoke multi-variate cyclical analysis which allows us to manage our risk and exposure to opportunities as we see them arise.
- This ability to provide income-driven returns from multiple sources, makes us believe that GMAI could be an attractive alternative to fixed income as a defensive core in portfolios.
