Going for gold: Multi-asset managers look beyond 'core assets' ahead of 'volatile' Q4

Tariff tensions and global slowdown key factors

clock • 4 min read

Managers of multi-asset funds are shifting their portfolios away from equities and increasing their holdings in gold, government bonds and currencies, in efforts to shield returns from what they anticipate will be a volatile Q4.

The ongoing US-China trade dispute, US President Donald Trump's impatience at the Federal Reserve's pace of interest rate cuts and an ongoing slowdown in the global economy are collectively creating a sense of déjà vu for managers who are keen to avoid some of the losses seen at the same time last year. Q4 2018 was a notably volatile period as the US-China trade dispute first came to the fore, the Fed struck a more hawkish tone and Chinese economic data appeared to weaken. The VIX - or Wall Street's volatility index - peaked at 24 points on 26 December last year, surpassing the volati...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers have opportunity to deepen private market engagement

Advisers have opportunity to deepen private market engagement

Most client allocations to private markets are either 5%-10% or 1%-5%

Isabel Baxter
clock 18 November 2024 • 2 min read
Royal London cuts number of governed range portfolios

Royal London cuts number of governed range portfolios

Renaming remaining portfolios to reflect level of investment risk

Jenna Brown
clock 18 November 2024 • 1 min read
AJ Bell cuts fees across multi-asset income range

AJ Bell cuts fees across multi-asset income range

£1.5bn of inflows this year

Beth Brearley
clock 14 November 2024 • 1 min read