Julien Moutier

“Our balanced portfolio continues to suffer from its credit and equity exposures. But as economic fundamentals have showed signs of weakening, valuations have begun to improve. Accordingly, we decided to increase our exposure to high yield and emerging debt, as well as emerging and European equities. We believe that current risk aversion creates an excellent opportunity to take on riskier assets, especially those supported by strong fundamentals. Consistent with this, we have reduced our positions in euro-denominated government bonds which benefited from the flight to quality.”