After a remarkably resilient performance in 2025 for the global economy and markets, the Asset Allocation Committee (AAC) maintains confidence in its overall outlook—continued strength in growth and risk assets over the medium term, with targeted tactical exposures across asset classes and regions.
Recent volatility related to U.S.-China trade tensions and credit risk in the banking sector is a stark reminder of macro risks that continue to stalk global markets—and how hard and fast they can hit.
When the facts change, we change our minds. The ‘liberation day’ sell-off increased the value proposition of non-U.S. markets, particularly in Europe and Asia. This is no longer the case.