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

Hardeep  Tawakley
clock • 3 min read

PARTNER INSIGHT: Eugene Philalithis, portfolio manager, Multi Asset Income range at Fidelity International, explains the challenges facing multi asset managers as they seek income returns outside of traditional asset classes

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...

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 Partner Insight

Partner Insight: How philanthropy advice could head off a client crisis

Partner Insight: How philanthropy advice could head off a client crisis

Younger clients are more likely to want advice on charitable giving

Gareth Jones
clock 08 February 2024 • 1 min read
Partner Insight: Cash vs investing — five key points to consider when talking to clients

Partner Insight: Cash vs investing — five key points to consider when talking to clients

Gillian Hepburn
clock 19 October 2023 • 5 min read
Partner Insight: Is 'strategic' still a dirty word? That depends...

Partner Insight: Is 'strategic' still a dirty word? That depends...

Some strategic bond funds are more effective than others

Gareth Jones
clock 15 August 2023 • 1 min read