Ryan Paterson

2025 is likely to be considerably more challenging, with financial markets having to battle with increased volatility. Whilst we are still of the view that the US economy will continue to grow at least on trend for the next several quarters, we remain wary of getting caught up in the exceptionalism theme, as this already looks priced by the market. Our tactical tilts here favour exposure to Financials and smaller companies. In Europe and Japan, we think high levels of dispersion represents a great opportunity for active managers and stock picking will be an important driver of returns. We have therefore increased our exposure to high conviction managers, and those unfazed by going against the crowd.

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