November 2023 Insights | Insight Private Clients

Annualised performance data in euros at 31st October 2023

Most traditional assets appear to be pricing in an expectation of near-flawless central bank policy decision making, anticipating that central banks can deftly tame inflation without prompting a subsequent meaningful recession. Listed alternatives, on the other hand, appear to be pricing in a far more pessimistic outlook. Alternatives can be a powerful force in portfolios beyond diversification. For example, infrastructure and real assets can offer protection if inflation lingers (or, in a worst case, reaccelerates). Private credit can benefit in an environment with higher interest rates and tighter financial conditions, and experienced managers can capitalise on stress in commercial real estate. In all, Managers see opportunity in a world in transition despite the recent track record of this sector.