Are you more exposed to AI stocks than you realise? As the AI trade comes under pressure and bond markets experience renewed volatility, investors could be taking on risks they never intended.

Eleanor Ingilby, head of high net worth and senior portfolio manager at Atomos, joins Asset Allocator to explain why global ETFs can leave investors heavily exposed to artificial intelligence and the Magnificent Seven, and how to build a more diversified investment portfolio.

Speaking to David Thorpe and Tara O'Connor, Ingilby explores the opportunities emerging from rising government bond yields, the role of alternative investments and why catastrophe bonds are attracting attention as a source of income and portfolio diversification. From fixed income and alternative assets to AI valuations and long-term investment strategy, this episode examines how wealth managers and financial advisers can navigate today's market uncertainty.

00:00 - Market volatility and investment opportunities

02:37 - Why portfolio diversification matters

05:04 - Catastrophe bonds: An alternative source of income\

06:47 - AI stocks, the Magnificent Seven and diversification

08:40 - Building defensive portfolios in volatile markets

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.

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With bond yields rising, inflation remaining stubborn and US stock markets increasingly dominated by a handful of technology giants, are investors rethinking how they build portfolios?

Eric Louw, senior investment manager at Aberdeen, joins Asset Allocator to explain why the firm has been reducing exposure to riskier assets, increasing allocations to government and investment-grade corporate bonds, and finding new opportunities in infrastructure and global equities.

Speaking to Aamina Zafar and David Thorpe, Louw discusses whether higher bond yields are here to stay, why shorter-duration bonds currently appeal to Aberdeen, and how infrastructure investments can provide diversification and protection against inflation.

The conversation also explores the risks of relying too heavily on the Magnificent Seven and the AI investment boom, alongside opportunities in UK and European small-cap stocks, Japanese equities and emerging markets.

Louw also shares the investment lessons of the past five years and explains why disciplined portfolio construction could be more valuable than attempting to predict the next market shock.

Timestamps

00:00 - Introduction: Aberdeen's asset allocation strategy

02:17 - How infrastructure performs when bond yields rise

06:13 - Short-term vs long-term bonds: Managing duration risk

08:43 - Looking beyond US equities and the Magnificent Seven

10:08 - Opportunities in Asia and emerging markets

13:25 - Why genuine portfolio diversification matters

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.

Hosted on Acast. See acast.com/privacy for more information.

Commodities should serve as a reliable safe haven in the event of an equity downturn next year according to Trevor Greetham, head of multi-asset at Royal London Asset Management, who shared his prediction when he joined this week’s Asset Allocator podcast.

Joining Aamina Zafar and David Thorpe, Greetham draws parallels between today's economic environment and the stagflation of the 1970s, explaining why geopolitical tensions, energy prices and commodity shortages could make inflation a persistent challenge for investors.

He also questions whether the surge in US corporate earnings, fuelled partly by artificial intelligence investment, data centres and semiconductor spending, is sustainable. With US equity valuations elevated, Greetham makes the case for overlooked opportunities in UK and European stocks, describing the UK stock market as a potentially attractive, inflation-resilient investment.

The conversation also explores the changing outlook for government bonds, UK gilt yields and inflation-linked gilts, alongside the role of commodities and gold in protecting multi-asset portfolios.

Timestamps:

00:00 - Trevor Greetham on investing and inflation

03:09 - Central banks, interest rates and inflation hedges

04:27 - Where is the value in global equities?

06:29 - UK stocks, commodities and inflation resilience

09:45 - The risks of US stock market concentration

14:04 - How to invest in commodities using ETFs and indices

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.

Hosted on Acast. See acast.com/privacy for more information.