Trends and

Making sense of market trends for portfolio construction


Treading carefully: A balancing act in 2023

The Portfolio Construction and Strategy (PCS) Team introduce the latest Trends and Opportunities report, which outlines key themes for the next stage of this market cycle and their nuanced implications across global asset classes.

  • As we enter a new era characterized by structurally higher rates and fresh discounts across major global asset classes, investors will need to tread carefully.
  • However, while we think volatility will continue in the year ahead, we also believe that volatility may present a silver lining for those who are bold enough to forge ahead.
  • The portfolio solutions we highlight in this edition have the potential help navigate this new environment and address the ubiquitous asset allocation gaps and concentrations we see in investor portfolios.

Global Portfolio Construction and Strategy Team


Look beneath the surface for small- and mid-cap opportunities

Why the small- and mid-cap space may present opportunities in the current economic environment.

European Equity: A warmer spring after a cold winter?

The more cyclical nature of European equities versus the U.S. and their lower relative valuations may present strong upside potential.

Healthcare: Immunity from the downturn?

The healthcare sector has proved resilient during past market downturns and may offer growth opportunities regardless of the recession outlook.

Sea change in short duration

How being nimble and flexible in a short-term fixed income allocation can help investors maintain stability during rate volatility.

Back to basics with intermediate duration

After investors had wisely been moving to the short end of the yield curve, intermediate-duration bonds may now be more attractive.

Starting ahead with a strong yield

The PCS Team explains why certain trends may prove to be supportive for both investment-grade and high-yield credit in 2023.

About the Portfolio Construction and Strategy Team

Our global team of expert strategists deliver custom insights and risk-modelling to help you meet your clients’ needs.