The latest data from Arc reveals just how tough 2022 was for clients, with the average cautious portfolio down 7.4 per cent, and the most commonly-tracked portfolio type monitored by the firm, the steady growth mandate, down 9.4 per cent.
That 2022 was an annus horribilis is hardly a revelation for our readers, but the reaction of the wealth managers tracked by Arc may surprise, with bullishness on bonds at the highest level for more than a decade.
Arc found 52 per cent of wealth managers now expect bonds to perform well over the next year.
They are also positive on healthcare, financial and energy equities, while being less keen on consumer discretionary and commercial property assets.
All of that indicates that battening down the hatches, rather than worrying about inflation, is central to allocators priorities in the year ahead.