In this article Dan Miles discusses the nuances of managing risk in a rising rate environment and whether bonds can still play a protective role in portfolios. Innova believe there is still a place for bond exposure in a diversified portfolio, but it is clear that navigating the current volatile environment requires a more active approach to asset allocation. The 40 year tailwind of falling interest rates and easy returns across equity and bonds is coming to an end and the future era will require a number of different strategies beyond just bonds and equities. Therefore at Innova we are investing for multiple scenarios, diversifying by risk premia and focusing on assets that are fairly priced.
Portfolio Insights March 2022 – Protecting portfolios in a rising rate environment
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