Julien Moutier

“Equities were significantly depressed by developments in the eurozone sovereign debt crisis, with doubts first centred on Greece and then later on Spain. The slump was seen across all markets: the developments in Europe represent a global risk and the international economic situation continues to falter, particularly due to still moderate US growth. We remain cautious within the portfolio and favour high yield credit in the US. Its valuation has become even better following last month’s widening of spreads. We will continue to wait for political improvement before increasing our equity exposure.”