Nalaka De Silva, multi-asset investor at Abrdn, says the new priority for clients in retirement means alternative assets may come more into play, particularly as bonds may be less suitable in portfolios where growth is also a requirement, and where inflation is rising.
His view is that a multi-asset portfolio built with retirement income in mind needs to have more alternatives in portfolios, with exposure to assets such as infrastructure and other alternative income products such as music royalty funds, as these offer an income higher than bonds and may have an income stream that rises with inflation.
He would view those assets as alternatives to bonds in portfolios. He has also reduced his equity exposure over recent months in order to invest more in those alternative asset classes.
david.thorpe@ft.com
