The Portfolio for the Future - AMRS 2022 | CAIA Association | 20 April 2022 | Webinar

Since the 1980s, global interest rates have fallen, equities have been in a secular bull market, and inflation has been nowhere to be found. These trends have only been exacerbated by accommodative monetary policy, supply chain globalization, labor union obsolescence, and highly adaptive and flexible labor categories. Many have argued that cheap capital has artificially smoothed economic cycles, provided a violent tailwind for capital market returns, and engendered a dangerous short-termism and gambling culture in the public markets.

The Portfolio for the Future simultaneously represents a “back to basics” mantra and a forward-looking view of where our industry and capital markets are headed. What defined success over the past decades may very well be at a tipping point at a time where many of these secular trends may be challenged moving forward. Rising inflation, tightening monetary policy, low and volatile interest rates, and high valuations mean that the Portfolio for the Future will be defined by five distinct “marks”: Broadly Diversified, Less Liquid, Rooted in a Fiduciary Mindset, Actively Engaged, and Dependent on Operational Alpha.