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 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


  • 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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