Deep Dive: Role of alternatives in portfolios remains despite higher bond yields

With interest rates at rock bottom for most of the last 15 years, and with the fixed income markets providing little yield at the same time, investors turned to the higher yields asset classes such as infrastructure, real estate, transport leasing and private credit. Newton Investment Management's head of mixed assets Paul Flood said that while the 60/40 portfolio saw the worst performance in over a decade in 2022, the inflation linkage or variable interest rates in many alternative assets meant the sector held up better. Wealth manager sentiment towards bonds reaches highest level si...