Multi-asset portfolio allocation

09 May 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

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

Fixed income

  • 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, the higher-quality segment is preferred, while remaining 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 are cautious on the emerging markets segment.


  • We believe that equities still seem relatively more appealing than bonds for long-term investor
  • 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 a bottom-up selection, more opportunities are seen 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.



Market Perspectives May 2023

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