Scott Mordrick

We are working hard to maintain balance in our positioning. We are especially cognisant that the most compelling investment narratives correspond with the least attractive valuations in equities. For example, we are much more comfortable with US equity exposure than with French exposure, even if the US stock market is trading at 23x forward earnings and the French stock market is trading at 13x forward earnings. As a tonic, we are complementing our regional exposure, which has a pro-cyclical bias, with a defensive bias in supra-regional sector-specific investments.

In fixed income, we maintain a preference for nominal government bonds over corporate bonds, though we do have a rump holding in both floating- and fixed-rate high-yield bonds. Our duration position is neutral.

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