Assessing the many nuances of model portfolio construction

2022 was a difficult year, particularly for investors who were expecting bonds to soften losses in their multi-asset portfolios during these turbulent times. Any portfolio holding fixed income while interest rates have risen will have experienced price falls as bonds have repriced. The size and speed of government rate hikes and subsequent bond market repricing have meant that even inflation-linked bonds have recorded losses. But these changing conditions are providing a useful opportunity to review the performance drivers behind portfolios. We can reflect on how different design inpu...