David Hood

We are mildly overweight equities where we are accentuating the allocation to European and Asian equities in particular. It is these regions where we see the most value currently. This equity position is funded by an underweight to absolute return which tends to struggle in rising markets. There are conflicting factors influencing global safe-haven bonds, but these factors largely balanced each other out at the headline level. As a result, we have a neutral weighting in bonds but an underweight position in corporate bonds and an overweight position in sovereign bonds.

We retain a small overweight in gold which has been very beneficial for low risk investors and have introduced a small allocation to silver which we think looks interesting. We have a slight overweight to cash so we have dry powder for when the market presents opportunities.

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