Markets might have got their interest rate outlook wrong, but the case for holding global bonds as part of a multi-asset portfolio remains as strong as ever.
Andreas Zingg, Head of Multi-Asset Solutions, Vanguard Europe, explains why the risk and return characteristics are different for ESG building blocks – and how advisers can take this into account when constructing portfolios for clients with ESG preferences.
Ongoing volatility in bond markets shouldn’t overshadow the long-term benefits of holding a broad spread of bonds as part of a diversified multi-asset portfolio.
Strategic multi-asset portfolios are most effective in helping long-term investors achieve their financial goals if investors observe discipline – especially during periods of market volatility.