Architas's Nevins on the opportunities and challenges for global portfolios

European leveraged loans attractive

As a UK investor the opportunity for low-risk income investments are still largely non-existent.

The main difference now is we do not have a tailwind behind fixed income as we have seen for the last decade.  While it is right to be globally diversified in terms of risk and sources of income there are challenges that come with that, especially around currencies. For the past two years, currency bets have been a major influence on overseas returns. Due to the different interest rates the obvious solution of currency hedging is fairly expensive if accessing US dollar priced assets. That is a challenge for a globally diversified portfolio.  So while it seems counter intuitive t...