How to prepare for catastrophe, pandemics and inflation risk
Because no one has a crystal ball, modelling a range of inflationary scenarios helps MLC best position its portfolios to combat ongoing uncertainty.
The MLC Investment Futures Framework includes several forecasts for various scenarios of inflation, deflation, catastrophic events and even pandemics.
“And in an environment of heightened uncertainty, many of these scenarios are becoming increasingly credible,” says Al Clark, head of investments, MLC Asset Management.
“Governments are behaving differently now to the way they did during the last crisis of 2008 and 2009.”
He notes that central banks around the world are pumping money into their economies more directly than ever – in Australia, this is done via the JobSeeker and JobKeeper programs, but each developed country has its own version.
In the following video, Clark explains why diversification is so important when faced with the longer term unknowns of stimulus measures and the potential for rapid, sweeping policy changes around lockdowns and reopening measures.
Investment thinking that makes a difference
Designed to suit a range of needs, MLC Managed Account Strategies provide transparent, diversified solutions for clients with different goals, time horizons and fee expectations.
The MLC Managed Account Strategies are currently available only through licensed Financial Planners. If you would like to access our capabilities, we strongly encourage you to speak your Financial Adviser. If you’re an adviser and you would like to learn more about our Managed Accounts solutions, please click here.