Multi-asset portfolio allocation

06 March 2023

Author name: 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

  • Given the ongoing level of uncertainty, and to manage portfolio risks, we still prefer higher-quality and liquid opportunities.

Fixed income

  • We see increasing opportunities in fixed income
  • We still prefer 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 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.


  • 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 market peers.

Alternative trading strategies (ATS)

  • 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.


  • 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.

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