In this article Dan Miles discusses the conundrum facing conservative investors, with interest rates near zero and valuations stretched in riskier assets, they have very few decent investment options left. Generating clients’ return objectives in this environment won’t be achieved by investing in cash or term deposits and conservative investors will need to accept more volatility than they have been used to. The Innova Lifestyle Preservation portfolio, which targets 1.5% above cash, shows it may be a bumpier ride than in the past, but risk-adjusted returns are still there for a skilled manager to exploit.
Portfolio Insights November 2020 – Conservative investors face low interest rate void
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