AB IQ

Quarterly Newsletter on Institutional Investing

Q1 2021: Reassessing Portfolio Diversification in a Pandemic Recovery

Meager bond yields and stretched equity valuations would be an investment challenge even in normal times—and the road back from the COVID-19 pandemic will be anything but normal. Investors must evaluate portfolio design with a focus on diversifying into new return sources, opportunity sets and areas of relative value. And flexibility is needed to adapt to an unpredictable recovery.



In this edition of AB IQ, we offer three principles to help investors position their equity and fixed-income exposures, balancing diverse return sources with protection against complex risks. We also examine key considerations in accessing uncorrelated nontraditional risk premia. And we take a closer look at how responsibility can add an important dimension to portfolios.


We hope these insights are helpful as you consider portfolio positioning for the recovery from an unprecedented disruption that’s reshaping opportunities and risks.

Q1 2021: Reassessing Portfolio Diversification in a Pandemic Recovery