Scenario and asset allocation for 2022

Asset allocation

  1. Softer growth Equities: neutral gaining from growth increased flexibility at this stage of cycle
  2. Higher inflation Bonds: caution advised Give priority to credit (growth) over duration (inflation)
  3. Lower liquidity injections Alternative investments: Overweight for yield and protection


  1. Loss of protection supplied by sovereigns Gold: in case of higher risk aversion and/or inflation
  2. Higher volatility/insurance Direct hedging strategies for equities
  3. Diversification/yield Hedge funds : defensive strategy

Income generation

  1. Low but rising sovereign yields Chinese sovereign bonds
  2. Positive economic climate Credit risk targeted: high yield, hybrids, Rising Stars
  3. Diversification Uncorrelated structured products (e.g. dispersion)

Capital gains

  1. Economic climate Equity investing style: more ‘value’ to gain from rate rises
  2. Growth boost Equity mega trends: to capitalise on long-term growth
  3. High potential Private Equity: innovation, 1 restructuring, value enhancement