Global equities are recovering from their poorest annual performance since the 2008-2009 financial crisis. In the face of persistent risks, investors are understandably considering additional offshore investments to diversify and deliver returns. "The global economic outlook is more complex than has historically been the case. Growth has slowed and greater volatility characterises the market," says Peter Vincent, head of investment solutions for Europe, the Middle East & Africa at Franklin Templeton. These factors have caused the US Federal Reserve to pause its interest rate hiking cycle as it shifts approach to a more patient, data-dependent response, says Vincent, who suggests that a diversified portfolio is vital. Mike Wood, wealth director at Apio Group, explains that global bonds can generate investment returns because they offer opportunities to offset the negative impact higher interest rates can have on overall returns. "These strategies are not without some downside risk. T...

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