Expert: Jonathan Arthur, Architas Multi Manager
Facilitator: John Porteous, Volume4 Consulting
Key Findings:
- Attendees agreed that there was increased interest in alternative assets (within a multi-asset framework) as a tool to diversify away from a potential bond bubble
- Concern that the risk for firms lay primarily in the back book as modern portfolios were more diversified
- Given potential future return projections for the bond asset class – concern was raised about the instance of lifestyle phasing in GPPs.
- When looking at long term returns, it was agreed that broader asset classes needed to be embraced (within a responsible risk mandate) – especially given the need to generate returns net of fees and more than CPI.
- Noted that the real asset universe offered several compelling attributes and that investible universe had increases (x2 or x3)
- In respect of Real Assets, there was debate (but no consensus) around the proportion that should be held in an overall portfolio – and the instruments that should be used.
