Traditional portfolio diversification isn't cutting it anymore. Here's where to pivot, says this $624 billion fund manager.

Allspring Global Investments says the classic stocks-and-bonds diversification model has weakened since 2021, particularly after the global bond selloff pushed yields from pandemic lows to multi-decade highs. Speaking in London, portfolio manager Rushabh Amin argued that investors should “orient strategies” that go beyond equities and bonds, citing inflation concerns, government deficits and higher loan demand linked to AI buildouts. Allspring’s approach emphasizes outcome-focused multi-asset strategies such as cash and inflation hedges, and it promotes liquid alternatives like commodities. Amin pointed to metals such as copper and silver for data-center infrastructure, and to energy strength amid the war in Iran. The firm also highlighted AI-relevant sectors—identifying “shallow moats” areas like software, consumer services and media, and “deep moats” beneficiaries—framing stock selection around AI adoption.