Quarterly Report: July 2025

Markets are entering a period where complexity and uncertainty are not obstacles, but catalysts for disciplined opportunity. As trade tensions, higher tariffs, and fiscal shifts test investor confidence, we believe that patient, long-term capital, anchored in strong fundamentals and prudent diversification, can still thrive. Recession risks may be rising, but with robust private sector balance sheets and flexible policy responses across key regions, the outlook remains more resilient than headlines suggest.

Multiple layers of shocks—trade barriers, fiscal deficits, and heightened geopolitical tensions—are continually reshaping market leadership. In this environment, the ability to filter signal from noise is essential. While geopolitical risk in the Middle East remains an active watchpoint and oil markets react to headlines, we see no structural break in long-term trends. Prudent vigilance, not panic, is the correct response.

Portfolio strategy today is about discipline, flexibility, and clarity of purpose. Selectivity and quality—across U.S. and global equities—are foundational. Multi-asset strategies, underpinned by active risk management and real diversification, are key as policy signals diverge and yield curves steepen. Maintaining diversified currency exposure, engaging with private markets for resilience, and employing tactical hedging are all tools to navigate volatility—not to fear it, but to harness it.

We continue to advocate for high-quality assets, global reach—including across currencies and real assets—and flexible, multi-asset strategies that look beyond the immediate noise. In a multi-shock world, clarity, discipline, and a long-term perspective remain our best tools for transforming uncertainty into opportunity.

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