Equities, fixed income
Lombard Odier’s portfolios are neutral in equities and fixed income. In Bindelli’s base case, he expects equities to play a valuable role in portfolios; he favours quality and resilience. Within equities, Bindelli retains an overweight position in Japan, where he sees an opportunity for valuations to rebound if the oil price normalises further. Within emerging markets, he prefers South Korea and China, and information technology among sectors. He balances these exposures with a preference for high-quality dividend stocks, and additional sector preferences for healthcare and utilities.

Haefele also believes that the secular trends of AI, electrification, and ageing demographics remain, and that exposure to structural opportunities is key in long-term wealth accumulation and preservation. He remains positioned for medium-term upside in equities.

Within fixed income, Bindelli remains underweight in government bonds and overweight in emerging market hard currency bonds. At this stage, he believes that US government bonds are unlikely to provide strong portfolio diversification. He prefers short-dated maturity bonds in the US and selective exposure to UK and Australian bonds where valuations are attractive. He retains a preference for emerging market bonds denominated in US dollars over developed market sovereign bonds.

Meanwhile, Haefele sees appealing risk-reward in short-duration, high-quality eurozone bonds, which offer attractive yields and resilience if growth concerns intensify. He thinks further easing should support the performance of equities in the medium term, and continues to favour quality bonds.