50% Fixed Income — 50% Equity

We maintained a balanced global allocation in May, keeping portfolio positioning at 50% Fixed Income and 50% Equities amid rising inflation concerns, elevated bond yields, and continued uncertainty surrounding the global macroeconomic outlook.

For Fixed Income, global bond markets remained under pressure as resilient economic activity, accelerating inflation, and fiscal concerns pushed U.S. Treasury yields higher during the month. The Federal Reserve kept policy rates unchanged but maintained a cautious stance as inflationary pressures remained elevated. Meanwhile, longer-dated Treasury yields rose as markets priced in higher inflation expectations and increased uncertainty surrounding future policy direction. Portfolio positioning remains below benchmark duration, with a continued focus on high coupon securities to help manage volatility and support income generation in a higher rate environment.

For Equities, global markets continued to advance and reached new record highs, supported by strong technology sector earnings and ongoing optimism surrounding artificial intelligence-related investments. Despite concerns over inflation and higher bond yields, investor sentiment remained constructive as corporate earnings and economic activity continued to show resilience. Portfolio positioning remains balanced but with a more cautious tilt, as underlying funds maintain participation in global growth opportunities while remaining mindful of elevated valuations and potential market volatility.