Hugo Thompson

We saw choppy waters during the first half of 2025, but in our view the tide is beginning to turn. See below a summary of our portfolio positioning:

• Preparing for a sunny horizon: fundamentally the global economy, and particularly the corporate sector, looks strong. This encourages us to hold an elevated position in global equities and high yield bonds

• Steadying the ship: given elevated policy uncertainty we are focusing on diversifying our equity holdings. We have reduced exposure to traditional US equity, and are focusing on S&P 500 equal weight, UK, Europe and Japan. We also continue to hold gold.

• Mind the debt iceberg: developed market governments are eyeing fiscal expansion, a trend that is particularly pronounced in the US. This encourages us to hold shorter dated bonds, and reduce our dollar exposure. We have also raised our Emerging Market Debt exposure.

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