The alternatives space also contains far more idiosyncratic opportunities to take advantage of, with the likes of infrastructure and property stepping into the role of income generator and diversifier for multi-asset portfolios, although driven by overwhelming investor demand for something different in a low growth world, many new and un-tested strategies are being launched. The danger of being pushed into these unfamiliar, un-acknowledged or un-monitored risks has never been higher, so investors should tread with caution in this new regime.
Christopher Meurice is associate director at Signia Wealth
Key points
The current low-growth conditions demand stringent investment criteria, as broad beta exposure is unlikely to reward investors for risk
By taking on credit risk selectively and blending it with cash, it is still possible to generate strong total returns
When markets turn, either in a recession or growth spurt, the portfolio must be able to protect capital or produce gains
