Emily Thomas-Adderson

The global investment landscape remains uncertain, with inflation stabilizing but growth recovering slowly and labour markets softening. Monetary policy divergence and geopolitical tensions are shaping asset allocation decisions. US equities, particularly in tech, appear overvalued, with limited upside amid sustained policy tightness—leading to a continued underweight stance. Conversely, European, Asian, and select emerging markets offer more compelling opportunities. Europe benefits from low valuations, easing inflation, and supportive fiscal conditions, while Asia—especially India and Southeast Asia—enjoys strong domestic demand. Some emerging markets may also ease policy as inflation subsides. On the defensive front, long-dated UK and European sovereign bonds provide attractive yields and downside protection as rate cuts approach. To build resilience, we maintain a significant overweight in absolute return funds, using strategies like long/short and market neutral to capture uncorrelated returns. This positioning balances risk and opportunity across regions and strategies, preparing investors for the next phase of the cycle.

‍