Raj Manon

We expect a modest rather than meaningful slowdown in global economic growth in the months ahead. While interest rates remain on a downward path, recent economic data means the market is pricing in fewer rate cuts over the next 12 months than were previously expected.

After a period where US tech giants have dominated, we expect market returns to be spread across a broader range of companies and for equity markets elsewhere in the world to begin to narrow the gap with the US.

We believe bonds look attractive because demand from investors is likely to increase as rates on cash deposits fall. In particular, we favour government bonds.

We have made a measured increase to our exposure to UK equities, on the basis of attractive valuations and a more supportive macroeconomic backdrop. We are also maintaining our allocation to infrastructure, a sector we expect to benefit as interest rates fall.