Preservation is a priority

The BNY Mellon Real Return team remains firmly in capital preservation mode, given the fragile economic backdrop and how it sees the outlook playing out over the short to medium term, says Newton portfolio manager Lars Middleton. From a positioning point of view, the portfolio maintains a defensive stance, retaining an ability to participate in a risk-on environment and step back in a risk-off scenario. Alternatives remain an attractive equity diversifier – boasting equity-like characteristics but with lower volatility – often through investment trusts centred on renewables and infrastructure...