Half-year reappraisal — entering the second half with quality intact

As the second half of 2026 opens, we have revisited the balance between strategic and tactical capital across client mandates. The conclusion is one of continuity: quality bonds, real assets and disciplined liquidity remain the core, with risk added only where we are paid to take it.

The first half rewarded patience. Front-end yields held up, credit spreads behaved, and equity markets advanced without demanding heroic assumptions. Entering the second half, valuations are fuller but not stretched, and the policy backdrop is supportive rather than restrictive.

Where we are adding, and where we are not

Adding, selectively. We are extending duration modestly on any back-up in yields, and adding to real assets — logistics, energy infrastructure and prime real estate — where income is contractual and inflation-linked.

Holding. Core quality fixed income and strategic liquidity remain fully weighted. In equities, we prefer breadth and cash-flow quality to narrow momentum.

Resisting. We are not reaching down the credit spectrum for yield, nor chasing the most crowded trades. The second half is a time to compound, not to gamble.

The discipline is unchanged: preserve first, produce reliably, grow patiently, and diversify with intent.

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This commentary is provided for information only and does not constitute investment, tax or legal advice. The value of investments and any income from them can fall as well as rise. Figures cited are illustrative for this prototype.