Our asset allocation

Against this backdrop, our portfolios are positioned to lean into the positive outcomes seen in the business cycle while earning the bond yields of a higher interest rate environment.

As such, our investments are weighted towards risky assets, more specifically global equities. For this exposure, we have chosen an active manager with a good track record of picking high quality, multi-national companies that can best manoeuvre the current environment.

We’re also earning 4% to 6% yields from the global government and corporate bond markets, where contractual income is attractive. Additionally, we have an allocation to global high yield as prevailing high single-digit yield levels have led to attractive long-term returns.

We have an allocation to gold given various uncertainties associated with the lagged impact of higher interest rates, record government budget deficits and geopolitical tensions. In stressed market events, gold tends to be protective, and we blend it with our bond allocation for diversification.