Outlooks

There are signs that investors across the world have changed their appetite to currency hedging US assets after 'liberation day'. Some of the knee-jerk reaction is likely out of the way and a weaker dollar consensus forming, however, the lingering uncertainty over the US economy and dollar is likely to be a major theme for the rest of the year. Our portfolios are well diversified by asset class and currency, so we have weathered the environment relatively well. In bond markets, although there is now greater steepness in the yield curve, we are not seeing enough to move us away from short duration.

Our focus remains making sure our bonds do their defensive job in portfolios, whether that be during a period of higher inflation, weaker growth, or the dreaded stagflation.

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