Under pressure: How multi-asset is adapting to inflationary times

Traditionally, multi-asset funds focused on equities and bonds, with some property. Weightings vary and equities are popular, but the range of asset classes used now is wider and more diversified and can include infrastructure weightings, derivatives, precious metals, and commodities. A high inflationary environment has negative repercussions for bonds. By contrast, equities can benefit from rising interest rates, which are often a consequence of inflation. Now, the Federal Reserve in the US and the Bank of England at home are warning markets to expect steady interest rate rises in 2022 ...