Stewart Smith

Within our latest tactical asset allocation review, we decided to maintain the majority of our existing positioning with a couple of exceptions. We marginally increased our view on UK gilts to neutral. Following the recent UK budget, we felt more comfortable with this asset class, as yields remain relatively attractive and the asset class provides good diversification qualities. We also marginally upgraded our views on Asian and emerging markets equities to slightly positive. We have become more comfortable with the outlook for these asset classes, as they have adapted to the impact of US tariffs and they are relatively attractively valued based on similar/better corporate earnings expectations versus western markets. Within fixed income our primary focus continues to be on shorter-dated investments, and on flexible investment strategies. The team maintain a neutral view on equities and we continue to like alternatives. We remain positive on infrastructure, real assets, and precious metals.

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