Investors are increasingly looking for ‘all-weather’ flexible strategies that can offer both resilience and growth across market cycles. The current macroeconomic environment continues to play an outsized role in investors’ asset allocation decisions. Over the past 36 months, global markets have experienced volatility in response to the Fed’s tightening monetary policy, evolving geopolitical issues, and broader macroeconomic factors, underscoring the benefits of incorporating a Multi-Asset Credit (MAC) strategy to build a more resilient portfolio.
We believe we are now in a ‘non-obvious’ market where investors need to look beneath the surface and across asset classes to identify compelling relative value. The market's ‘higher resting heart rate’ for rates and inflation highlights the importance of dynamic capital and asset allocation, especially for long-term investors. MAC also provides a diversified risk-reward model with consistent income and the potential for principal appreciation, making it an attractive option for investors looking to maximize returns while managing volatility.
In this paper, we will discuss what MAC is, its benefits, and why we believe KKR’s approach to MAC stands out in today’s non-obvious market.
