Tom McGrath

Market Positioning Update We've adjusted our allocation to reflect the shifting macro landscape. US equities have been trimmed just under neutral, acknowledging valuation concerns and heightened policy uncertainty. The risk-reward dynamic has softened, particularly with AI-driven names facing headwinds.

Meanwhile, we've increased exposure to Europe, the UK, and China, bringing all three to a slight overweight. Europe offers a compelling mix of attractive valuations and improving growth prospects, while the UK continues to benefit from resilient earnings and a more stable rate outlook.

In China, sentiment remains fragile, but policy support and deeply discounted valuations justify a tactical move higher. Broadly, we remain selective, leaning into areas of undervalued opportunity while keeping dry powder amid policy and market volatility.

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