1. Cash

The Reeves Investment Committee feels that whilst conflict in the middle east has made things uncertain, over the longer term interest rates have now peaked. Capital is better positioned within diversified assets capable of delivering long-term real returns.

 

2. Bonds

With real yields having normalised, the committee believe the risk/reward trade-off within inflation-linked bonds is less compelling.  Broader fixed income strategies with flexibility offer a more attractive opportunity set, with high-quality corporate bonds offering attractive yields compared with recent history while maintaining strong credit quality.

 

3. Property Investment

Given the opportunity set offered through global markets and the structural headwind of hybrid and remote working on commercial property valuations, we believe capital is better allocated to areas with stronger long-term growth prospects.

 

4. UK Equities

Structural economic challenges and a limited universe of high-growth businesses suggest capital may be more effectively deployed elsewhere.  UK equity markets continue to offer attractive dividend yields however, and the UK markets significant exposure to energy, financials and commodities can provide resilience during periods of geopolitical or inflationary uncertainty. 

 

5. Emerging Markets

Emerging markets currently present a favourable combination of attractive valuations, supportive demographics and improving currency dynamics. Increasing exposure provides diversification away from developed market concentration while offering long-term growth potential.

 

6. Defined Return / Structured Equity Strategies

Strategies designed to deliver defined or outcome-based returns can provide more predictable return profiles across different market environments. These approaches can help dampen portfolio volatility while still participating in equity-linked returns.