Exposures for today’s markets

The Short List Script and disclosures – non-product version

Speaker:

Karim Chedid

Head of EMEA Investment Strategy, Global Product Solutions

Approved countries list: Approved countries: Austria, Denmark, FinIand, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, United Kingdom

FOR PROFESSIONAL CLIENTS / QUALIFIED CLIENTS / QUALIFIED INVESTORS ONLY

Script:

Welcome to The Short List: a roundup of our highest-conviction ideas for autumn 2025 across asset classes.

Banner: Investment directions for autumn 2025

The global macro picture has held steady throughout most of 2025, but cracks have started to emerge in recent months, and despite some breakthroughs since our last update in the spring, policy and geopolitical uncertainty persist. Investors are also facing new and accelerating portfolio challenges, like increased currency volatility and unstable cross-asset correlations. Against this backdrop, we seek potential upside tactically, while rethinking portfolio allocations now and for the long term.

Banner: Opportunities for growth

Firstly, we look for opportunities for growth — we remain risk-on into year-end, but selectively. We see elevated sectoral dispersion continuing in Europe and the US, so we navigate developed market (DM) equities by leaning into select areas, like European defence and US banks, or leveraging alpha-seeking strategies to spot potential winners. With volatility still a risk, we look to add a layer of protection to US equity allocations via deep buffer strategies.

The macro picture also looks brighter for emerging markets: we favour high-conviction, alpha-seeking EM strategies, alongside tactical allocations to China and India. Beyond equities, we see potential upside from differentiated drivers of return like gold, which remains our geopolitical hedge of choice.

Banner: Opportunities for income across asset classes

Secondly, we’re seeking opportunities for income across asset classes. In fixed income, we focus on spread assets. We like local currency emerging market debt (EMD), off the back of supportive monetary, fiscal and foreign exchange tailwinds. In DM, we’ve upped conviction in US IG credit as the risk-return outlook has become more balanced and we stay positive on EUR IG for volatility-adjusted income.

We also like flexible income solutions that offer exposure to ‘plus’ sectors like securitised assets and CLOs, as well as EMD and HY credit. In equities, active high income strategies stand out for their yield potential.

Banner: Rethinking portfolios

Finally, we’re rethinking portfolios as long-held market assumptions have been challenged in 2025. We look at 4 portfolio considerations leaning into top questions we are being asked by our clients. With stock-bond correlations shifting, investors can use max buffer strategies to seek to manage drawdowns, or enhance their strategic asset allocation with market-neutral strategies to manage beta.

We look to blend fundamental and systematic strategies to try to achieve repeatable, uncorrelated alpha in a new environment for alpha generation. To navigate currency volatility, we favour a more active approach to currency hedging. Finally, we see a potential opportunity to add to private markets as the investible universe expands.

Banner: Investment directions for autumn 2025

Please see our latest Investment Directions report for more on these exposures.

TEASER:

Hello and welcome to The Short List — a roundup of our highest-conviction ideas for autumn 2025 across asset classes.

Banner: Investment directions for autumn 2025

Banner: Opportunities for growth

Firstly, we focus on Opportunities for Growth, exploring how investors can continue to capture upside and tilt towards risk into year end — while emphasising the importance of selectivity.

Banner: Opportunities for income across asset classes

Secondly, we’re seeking Opportunities for Income, highlighting a generational moment for income investing across asset classes, with compelling yields and resilient fundamentals.

Banner: Rethinking portfolios

Finally, we’re Rethinking Portfolios to reflect how long-held market assumptions have been challenged in 2025 and what this could mean for investors.

Banner: Investment directions for autumn 2025

For more on the exposures where we see opportunity in today’s markets, explore our latest Investment Directions report.

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