Investors should get ready for a more volatile year ahead after they have seen a relatively benign 2019 with excellent returns across the traditional asset classes, Schroders’ head of fixed income and multi-asset, Simon Doyle, said.
Looking forward, a key takeaway from the past year for investors should be that in the absence of recession, liquidity would trump growth and if interest rates remained low, markets would be supported.
“This year will be much more challenging than the past year and I think it’s a general rule that the next few years will be more challenging,” Doyle said.
According to Schroders’ head of distribution, Graeme Mather, 2019 was dominated by a number of changes happening across the superannuation industry, with a number of regulatory changes happening and a rapid increase in mergers and acquisition, a trend which was expected to be continued throughout 2020.
On the other hand, the lesson from 2019 showed that investors – including financial advisers – were more interested in looking outside the traditional asset classes.
“Some traditional assets are starting to look really priced and one of the things that we have seen from our clients and not just the superannuation funds but financial advisers as well is that they are looking at the broader investment opportunities options not just equities and bonds,” Mather said.
Among the asset classes which seemed to see a growing interest from...