Asset Class Views

Global Asset Allocation Views 4Q 2022

Anticipating subtrend growth well into 2023, we remain neutral duration and overweight cash. We underweight equities, expecting meaningful earnings downgrades. We take a neutral stance on credit, with a clear preference for investment grade over high yield.

Global Fixed Income Views 4Q 2022

Recession is our base case scenario, at 50%. We raised the likelihood of Crisis to 15% while lowering Sub Trend Growth to 30% and Above Trend Growth to 5%. We’re using market rallies to reduce our interest rate exposure and credit risk. Our best idea: high quality, short-dated cash flows.

Global Equity Views 3Q 2022

Though global equity markets are already down more than 20% this year, our portfolio managers remain cautious. In a downturn, quality matters, in managements and balance sheets.

Factor Views 4Q 2022

The factors that we favor held up well in a challenging 3Q 2022 market environment: Equity momentum, merger arbitrage and macro carry were all positive, and losses across other factors were relatively limited. We maintain our positive outlook for equity factors, which appear cheap.

Products

Asset Class Capabilities

Investment Approach

College Planning

Defined Contribution

Market Insights

Portfolio Insights

Retirement Insights

Portfolio Construction

Defined Contribution