The multi-asset playing field presents income investors with broad opportunities across asset classes. But investors that rely only on traditional stock dividends and bond interest may be missing out on other attractive income sources.

A healthy mix of income and growth potential may yield a more effective equity allocation.

The playing field presents broad opportunities for income investors today, with income and growth potential across asset classes. But an effective defense is also critical in capturing that potential. When it comes to the tools of the trade, we think broader is better.

Income investors face a promising landscape today. But we think income investing should be more than simply combining the highest yielders in each asset class, which could create unintended risks. In our view, an efficient multi-asset approach can help find the right balance between income, growth and diversification.

In a turbulent 2025 dominated by US trade policy shocks and geopolitical tensions, the global economy proved resilient. Fears of tariff-related slowdown and renewed inflation proved misplaced, as growth surprised to the upside and inflation continued to soften.

Sovereign bonds have long been the prime defensive asset for multi-asset portfolios. But in today’s extraordinary market conditions, should investors make more extensive use of other defensive choices?

Capital markets have rebounded from their COVID-19-induced lows, but impacted industries have lagged substantially. That pessimism may be overdone in some cases, creating opportunities for multi-asset investors to exploit dislocations.

The last decade produced great performance across most asset classes. But in the 2020s, we expect investment market returns will be lower and risk harder to manage. Looking forward, a disciplined multi-asset approach will be especially valuable to identify opportunities and help mitigate setbacks.

Investors are likely to remember 2018 as the end of the era of easy money, low volatility and steady margin expansion. Investing will be more challenging in 2019—and diversification will be more important than ever.

Rising US interest rates could pose a challenge for target-date funds (TDFs) that concentrate on “core” US fixed-income exposure. Diversifying across a broad range of bond markets and strategies can create a cushion in a rising-rate environment.

Today’s risks are clear: stock valuations are high, credit spreads are tight and interest rates remain low. A modest tilt toward return-seeking assets still makes sense. But investors should also be willing to look beyond traditional stocks and bonds.

For decades, there were two things that workers saving for retirement could count on: falling interest rates and low inflation. Change may be afoot. We think target-date funds should take notice.