Robert Hurford

The re-election of Trump has heightened investor focus on fiscal policy and deregulation. We have been positioning portfolios for a "higher for longer" interest rate environment by reducing fixed income and adding to US equities, which should benefit from lower taxes. Japan is becoming an increasingly important allocation for us, with strong demand signals in the domestic economy, and currency dynamics that should favour foreign investors. While the clean energy theme continues to face headwinds, bipartisan support for water and grid infrastructure underpins an exciting opportunity for sustainable investors. We remain watchful of geopolitics, which continues to be the major tail risk facing markets. Our portfolios are positioned for diversification and secular growth, as captured by our impact themes.