With markets likely to remain uncertain, are you looking for a defensive total return strategy which could form a core holding within your portfolio, replacing your reliance on fixed income?
Feb 21, 2023
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.
This communication is provided for general information only should not be construed as advice.
All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.