Ollie Rubinstein

We believe rates will continue to decline steadily throughout 2025, though at a more measured pace than markets had initially expected, and that inflation is largely under control. Albeit likely to be somewhat volatile driven by seasonal fluctuations, base effects and sticky services inflation in the UK, and the potential implementation of tariffs, immigration policy and fiscal spending in the US.

We maintain an overweight position to UK equities, given their relative cheapness, though we remain watchful of the impacts from the recent budget. In the US, we anticipate President-elect Trump's 'America First' policy will provide tailwinds for domestic small and mid-cap companies. Consequently, we are adopting a more risk-on stance and plan to increase our tactical allocation to US equities.