‘Diversification is broken.’ ‘Multi-asset solutions rely on bonds and will underperform.’ ‘The 60/40 portfolio is dead.’ These views have been echoing in the market since the collapse in yields across the globe in the first quarter of this year.

But there are several incorrect assumptions behind these statements. Relying on bonds alone for diversification has always been a false dichotomy – holding two asset classes is not a ‘multi-asset’ portfolio. True multi-asset approaches have always used a much wider array of tools to achieve diversification and manage risk. Whether you want a decent total return or a consistent yield for a reasonable level of risk, flexible multi-asset strategies have plenty of options at their disposal.