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Multi-asset update – Navigating volatile markets amidst a global pandemic

In this live webinar hosted by Columbia Threadneedle, Alex Lyle, Head of Managed Funds and Felicity Long, Multi-Asset Client Portfolio Manager discuss how we have been thinking about, and responding to, this rapidly evolving situation and where they see opportunities for Balanced Portfolios.

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Columbia Threadneedle

Columbia Threadneedle

The market response to COVID-19 has been astonishing, with sharp falls across risk assets, a jolt higher in volatility and a meaningful rise in cross asset correlations. Perhaps these moves are justified, as the cost of a ‘sudden stop’ to economic activity in the short term will undoubtedly be huge. Yet, the global policy response has also been vast, in both its scale and speed.

 

Key takeouts 
  • The market response to the global pandemic has been astonishing. Volatility and cross-asset correlations have moved sharply higher. And perhaps justifiably so, as sectors of the economy simply shut down 
  • Equity outlook: broadly positive with some sectors benefitting from the current environment but there are risks
  • Global bond outlook: reasonable background but little value from here. For global bonds, tactically overweight duration and a preference for quality in credit
  • Global property outlook: Neutral – near-term economic headwinds but supportive structural trends. Defensive rental income that is best exposed to long term growth prospects 
  • Allocation to sub-portfolios: Overweight equity. Underweight fixed income. Neutral property

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