Rob Enslin

For Q1 2026, our asset allocation remains moderately defensive with a preference for selective risk-taking. In fixed income, we maintain a shorter-duration stance as higher US issuance and tariff-related inflation may keep long-end yields elevated. We prefer high-quality credit where real yields remain attractive.

In equities, we continue rotating toward value and quality factors, given stretched growth valuations and a maturing US market cycle. Emerging markets offer improving risk-adjusted opportunities supported by better currency dynamics and more reasonable entry points.

We remain constructive on alternatives, particularly hedge funds, private credit and real assets, which continue to provide uncorrelated returns and meaningful downside protection.

Within South Africa, strong 2025 gains leave local assets more fairly valued, prompting us to trim long-duration bonds and reallocate selectively offshore, while maintaining balanced exposure across equities, fixed income and alternatives.

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