30% Fixed Income — 70% Equity

We maintained a balanced global allocation in June, keeping portfolio positioning at 50% Fixed Income and 50% Equities as markets continued to navigate evolving Federal Reserve expectations, persistent inflation, and geopolitical developments. While investors became increasingly cautious amid the possibility of higher-for-longer interest rates, resilient economic fundamentals continued to provide support for risk assets.

For Fixed Income, U.S. Treasury yields moved higher across the curve during the month as markets priced in the possibility that the Federal Reserve may keep policy rates elevated for longer amid sticky inflation and resilient economic data. The yield curve bear flattened, with shorter-dated yields rising more sharply than longer maturities. We maintained an underweight duration position relative to benchmark, favoring short-dated fixed income exposures that offer attractive carry while remaining selective on credit opportunities. We also continued to take profits on longer-duration holdings while awaiting more attractive re-entry levels should yields move higher.

For Equities, global markets experienced increased volatility as investors reassessed elevated valuations in large-cap technology stocks amid rising uncertainty over future earnings and capital expenditure trends. While technology leadership broadened into AI-related beneficiaries such as semiconductors, investors also rotated toward defensive sectors including healthcare and utilities. Portfolio positioning remains diversified, with a preference for broader market exposure and selective sector allocation while maintaining a neutral overall equity stance.