• Policy and markets are likely to become increasingly ‘normalised’ in 2022 as major central banks turn less accommodative and equities and corporate bonds deliver positive, but increasingly modest and volatile, returns. Any path to normality, though, is likely to follow the twists and turns of the inflation
    debate, virus mutations and policy shifts.
  • We expect equities to outperform bonds and cash, even if returns are muted relative to recent years. We prefer US and Euro area equities, in particular.
  • Minimising interest rate and FX sensitivity is key to selecting bonds. We prefer Asia USD and US/European High Yield corporate bonds.
  • Aside from our foundation allocations, we see tactical opportunities in selective cyclical sectors and strategic opportunities in multi-year themes.

Long-term themes:

  • The Winds of Climate Change
  • Embracing a Digital Future
  • China’s ‘Common Prosperity’