“As an asset allocation team that takes more of a medium-term investment view, we typically tend to look through short-term macroeconomic and political noise. However, when the short-term risks are significant enough, we act,” Onuekwusi said.
“Following the UK’s vote to leave the EU, other global events have continued to capture our attention. Given the various political and economic uncertainties unfolding in Europe, combined with concerns about the Federal Reserve increasing rates more quickly than expected and the possibility of a Chinese hard landing, we have reduced our overall risk outlook from neutral to negative.
“Today, the opportunities for multi-asset investors extend much further than traditional safe-haven assets such as gold. As the dust settles following the EU referendum, talk of ‘Brexit means Brexit’ will continue. But the multi-asset universe is laden with opportunities and constantly expanding. It is the role of the investor to adapt and evolve within it.
“Volatility creates opportunity, and as Peter Lynch once said: “The person that turns over the most rocks wins the game.” This is particularly true for multi-asset investing.”