It has become clear that 2022 marked the end of an era in which ultra-low interest rates and unprecedented central-bank stimulus drove strong gains for the prices of risky assets. The post-2022 market regime has so far been characterised by shakier economic growth, inflationary pressures, higher interest rates, and more restrictive monetary policy. We expect lower stock and bond returns in excess of cash; therefore, investors who have relied on market returns may now struggle to reach their target objectives.
To our minds, all is not doom and gloom. In fact, we believe quantitative strategies with diverse return sources can thrive in the new market regime. Newton’s multi-asset solutions team offers a suite of fundamentally driven strategies that are systematically delivered, and that we believe can generate attractive returns through full market cycles. We have a strong track record of working closely with our clients to design and deliver specific outcomes.
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