Matthew Hinman

We remain overweight on inflation-linked bonds, as recent data suggests inflation could reaccelerate or at least plateau above the Federal Reserve's target. With Trump set to assume the presidency in January, his administration's focus on expansionary policies may add further inflationary pressures to the economy.

We maintain our overweight positions in Asia and Emerging Market equities, supported by attractive valuations and their lower correlation with US large caps. Continuing weak data in China may finally encourage the Chinese government to implement additional fiscal stimulus.

In fixed income, we remain underweight credit due to the minimal extra compensation offered for the added risk over sovereign bonds. We continue to be overweight emerging market local government bonds as we see the Federal Reserve easing cycle will particularly benefit these localities.

We are also underweight European equities and fixed income due to the ongoing political turmoil.