What are the big lessons investors should take from 2022?
“The first one is that volatility in financial markets is a normal thing,” says Penal’s Michael Blayney in this fast podcast.
“It can obviously cause short-term pain, but it also creates opportunities for investors who are willing to take a long-term view when value arises.”
The second lesson relates to the correlation between bonds and equities.
“People had assumed bonds and equities would always move in opposite directions with that negative correlation we’ve seen over the last decade or two.
“But the reality is that correlations and diversification benefits of various asset classes do vary over time.
“So it’s important to have more than just bonds and equities in a mix.
“We believe in having meaningful allocations to alternative assets. Some of the exposures there — particularly those that have given us a bit more energy price exposure or some commodity-linked exposures — have performed quite well in the last year and helped cushion the downside for investors.”
In this podcast Michael also discusses the current value of major asset classes and suitable portfolio settings.
Find out about
Pendal Multi-Asset Funds
Michael Blayney leads Pendal’s multi-asset team. Michael has more than 20 years of investment management and consulting experience. He was previously Head of Investment Strategy at First State Super and head of Diversified Strategies at Perpetual.
Pendal’s diversified funds provide investors with a variety of traditional and alternative asset classes and strategies.
The team — which also includes Allan Polley — manages our multi-asset portfolios with a focus on strategic asset allocation, active management and tactical asset allocation.
Pendal is an independent, global investment management business focused on delivering superior investment returns for our clients through active management.
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