In our latest CIO Special, 'High nominal yields, high inflation: the case for systematic hedging', we explore an investment strategy that could help to address some key challenges in the current environment.
We highlight the following:
- A changing investment environment has prompted many investors to question their approach to asset allocation and risk management.
- Higher nominal interest rates may increase the appeal of fixed income, but there are also risks. Equities can provide portfolios with some inherent inflation resilience.
- Asymmetric strategies using systematic hedging should over time allow investors to transform risk-taking ability into upside potential.