Four Strategic Allocation Issues for Asset Owners in 2023
Inigo Fraser Jenkins and Alla Harmsworth, AB’s Co-Heads of Institutional Solutions
About this talk
Please join us for a replay of our recent webcast with Inigo Fraser Jenkins and Alla Harmsworth, AB’s Co-Heads of Institutional Solutions, as they take a deep dive into four key issues asset owners must address as they consider portfolio design in what’s likely to be another challenging year in 2023:
+ Liquidity is a growing concern, given the transition from quantitative easing to tightening, asset owners’ shift to more illiquid portfolios and expectations for more volatility in inflation and interest rates.
+ The public/private assets split is probably the most contentious allocation issue. There are still many reasons to increase private-market exposure, but the decline in public valuations and rising worries about liquidity raise questions.
+ The outlook for risk assets—particularly equities and high-yield bonds—is the subject of lively debate, as the world heads into a period that will see slower economic growth.
+ There is a large emerging difference in the relative supply and demand for stock vs government bonds that could influence the medium term allocation to these assets.