Multi-asset portfolio allocation

Multi-asset portfolio allocation

06 February 2023

Julien Lafargue, CFA, London UK, Chief Market Strategist

Barclays Private Bank discusses asset allocation views within the context of a multi-asset class portfolio. Our views elsewhere in the publication are absolute and within the context of each asset class.

Cash and short duration bonds: Positive
  • Given the ongoing level of uncertainty, and to manage portfolio risks, we still prefer higher-quality and liquid opportunities
Fixed income: Neutral
  • We see increasing opportunities in fixed income
  • We maintain a preference for developed market government bonds as a hedge against any macro volatility
  • In credit, we prefer the higher-quality segment and remain selective elsewhere
  • In high yield, where selection is key, our exposure is relatively low, as spreads have room to widen further in an adverse scenario
  • We prefer high yield and emerging market (EM) hard currency debt over EM local currency debt, considering the risk that faces their economies and currencies
Equities: Most positive
  • We believe that equities remain relatively more appealing than bonds for long-term investors
  • Yet, we are highly selective in our allocation
  • In line with our long-term investment philosophy, portfolios remain geared towards high-quality, cash-generative and conservatively-capitalised businesses
  • As a function of our bottom-up selection, we currently see more opportunities in developed market equities compared to their emerging peers

Alternative trading strategies (ATS): Cautious


  • There are a limited number of opportunities in the ATS space, as the cost/benefit trade-off can be challenging
  • Our focus is on strategies offering diversification benefits due to their low correlation to equity markets


Commodities: Neutral
  • As a risk-mitigating asset, gold remains the only direct commodity exposure held in portfolios

  • From a portfolio management perspective, we believe that our risk budget is better spent outside of the asset class



Market Perspectives February 2023

Welcome to our February edition of “Market Perspectives”, the monthly investment strategy update from Barclays Private Bank.