-
""

Multi-asset portfolio allocation

04 September 2023

Julien Lafargue, 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 prefer higher-quality and liquid opportunities

Fixed income 

  • More opportunities are popping up in fixed income 
  • We still favour 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 market segment

Equities 

  • Equities still seem to be 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 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 that offer diversification benefits due to their low correlation to equity markets

Commodities 

  • 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 September 2023

Read our latest round-up of the global themes, trends and events currently influencing investors. 

Disclaimer

This communication is general in nature and provided for information/educational purposes only. It does not take into account any specific investment objectives, the financial situation or particular needs of any particular person. It not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful for them to access.

This communication has been prepared by Barclays Private Bank (Barclays) and references to Barclays includes any entity within the Barclays group of companies.

This communication: 

(i) is not research nor a product of the Barclays Research department. Any views expressed in these materials may differ from those of the Barclays Research department. All opinions and estimates are given as of the date of the materials and are subject to change. Barclays is not obliged to inform recipients of these materials of any change to such opinions or estimates;

(ii) is not an offer, an invitation or a recommendation to enter into any product or service and does not constitute a solicitation to buy or sell securities, investment advice or a personal recommendation; 

(iii) is confidential and no part may be reproduced, distributed or transmitted without the prior written permission of Barclays; and

(iv) has not been reviewed or approved by any regulatory authority.

Any past or simulated past performance including back-testing, modelling or scenario analysis, or future projections contained in this communication is no indication as to future performance. No representation is made as to the accuracy of the assumptions made in this communication, or completeness of, any modelling, scenario analysis or back-testing. The value of any investment may also fluctuate as a result of market changes.

Where information in this communication has been obtained from third party sources, we believe those sources to be reliable but we do not guarantee the information’s accuracy and you should note that it may be incomplete or condensed.

Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation.