The Global Allocation portfolio is designed to perform well across a broad range of market environments, but additionally, we hedge specific risks to increase the outperformance in specific market environments. One example would be our allocation to real assets equities would serve as a hedge against unexpected or high inflation. Real assets invest in REITs as well as natural resources metals and mining and precious metals.
And for the better part of the period since the global financial crisis, investors haven't really focused on inflation or real assets. Post-COVID where we've seen, dislocation and supply of key commodities We've seen trending higher inflation expectations. Certainly, in 2022, Russia's invasion of Ukraine fueled the spike in inflation.
However, we see that looking forward potentially more persistent inflation that reinforces the strategic role of real assets in the portfolio as a hedge against higher inflation. Additionally, tactically, we can overweight or underweight our allocation to real assets based upon our inflation outlook, as well as relative opportunities between real assets and global equities.
Additionally, with higher inflation, we may also see higher interest rates going forward than we've seen over the last decade. Our allocation to alternatives through our absolute return oriented fixed income strategy, which provides defensive attributes with less interest rate sensitivity than the broad bond market. It provides a tool, which can help us moderate volatility associated with transitioning to a higher interest rate regime.