Higher inflation is one of the biggest risks multi asset investors face today

Q. What do you see as the major challenges for income investors today? I think inflation is definitely a challenge for income investors today - it's been a long time since we thought there was the potential for inflation to rise above central bank targets or for central banks to raise rates. Multi asset strategies have an important role to play here and it's not as simple as just allocating to inflation-linked instruments. Inflation-linked bonds, for example, can perform poorly if real yields rise at the same time as inflation itself rises. You also need to consider the different lags be...