• Uneven expansion amid inflation persistence risk
  The global economy remains in an uneven expansion. Growth is still positive, but leadership is narrow across regions, sectors and earnings drivers. Inflation risks have not fully normalized, particularly where energy and supply shocks can still influence expectations and central-bank reaction functions.
• Strategy/Positioning: Selective participation with a mildly defensive barbell
  Our allocation remains selectively invested, with a deliberate emphasis on quality, liquidity and resilience. We continue to participate in areas where earnings visibility, balance-sheet strength and structural support remain strongest, including DM Equity and a more constructive stance on EM Equity, supported by earnings momentum and AI-related supply-chain bottlenecks. The portfolio aims to capture attractive quality carry while preserving resilience against downside scenarios.
• Risk Environment: Low visibility & Asymmetry
  Risks are asymmetric, with downside not fully priced. The persistence of the energy shock and potential policy missteps increase vulnerability, despite financial conditions remaining supportive overall.

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