Anika Sidhika
6 min read
Dominic Kohler, head of investment and client solutions at Brown Shipley, a Quintet Private Bank, reflects on the resilience of traditional assets, equities and bonds, amid inflation, volatility, and a new generation of investor expectations.
Marked by rapid macroeconomic shifts, traditional asset classes such as equities and fixed income are being tested like never before. According to Kohler, the investment landscape is one of complexity and opportunity where prudence, adaptability, and trust are more valuable than ever.
“We have been navigating a challenging environment over the past couple of years,” Kohler notes. “High interest rates, sustained inflationary pressure, volatile markets and continued geopolitical uncertainty” have reshaped how traditional assets are perceived and deployed.
For equities, Kohler stresses, “being more selective; quality and resilience matter more than ever.” On the fixed income side, the outlook has brightened. “Things are looking up again now that yields are more attractive.”
This combination of cautious optimism and tactical flexibility underscores Brown Shipley’s broader approach. “It’s a market where careful positioning is key – with a focus on the long term whilst also looking for opportunities as and when they present themselves.”
Even as inflation shows signs of cooling, Kohler maintains that preserving wealth remains a core priority especially for private clients seeking long-term stability.
“Apart from capital appreciation, our investment philosophy also includes a focus on wealth protection,” he explains. “Even with inflation starting to ease, this remains key. Quality shares and government or corporate bonds remain reliable tools to help us deliver on our philosophy.”
While new asset classes and financial innovations continue to emerge, Kohler believes in the continued importance of traditional investments. “We are convinced that – even with changing market conditions, new asset classes and product innovation – traditional assets will continue to play a key role.”
Brown Shipley employs a flexible yet disciplined approach to asset allocation, allowing it to respond quickly to market developments without losing sight of long-term objectives.
“We have a dynamic asset allocation approach,” Kohler explains. “We actively adjust our positioning as the market changes, always guided by our long-term outlook but responsive to short-term shifts.”
During periods of heightened volatility, this might involve reducing exposure to riskier assets like equities and increasing allocations to higher-quality bonds. “Within equities, we lean towards sectors and companies that are better positioned to weather uncertainty,” he adds. “On fixed income, with yields now more attractive, bonds have become an effective tool not only for capital preservation but also income generation.”
