Q1 2025 Global Asset Allocation Perspectives

We use these “Big Ideas” as a way of sense-checking our portfolio tilts and ensuring they are reflected in all of our portfolios. Many managers prefer to express this view through credit, and others through modest, but targeted equity overweights. Our quantitative models today signal a reduced level of confidence in taking directional risk, but also highlight ample relative value (RV) opportunities.

In equities, most portfolios sit close to neutral but with a targeted pro-risk tilt achieved through regional and sectoral RV views. Our benign economic view, with growth risks likely greater to the upside, supports earnings growth, especially into 2026. However, valuations in many markets are well above long-term averages, a headwind to future returns.

Carefully consider the BlackRock and iShares Funds within the model portfolios’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting or Read the prospectus carefully before investing. Our models blend our team-managed mutual funds across an open architecture platform of ETFs – to give ourselves access to the largest universe of investments possible with the goal of outperforming our benchmarks on a risk-adjusted basis.

Equities

• We prefer sovereign bond markets outside the U.S., such as Italian government bonds (BTPs) and UK Gilts, over Japanese bonds.
• You should consider whether an investment fits your investment objectives, particular needs and financial situation before making any investment decision.
• With that said, given the recent appreciation of bond prices combined with higher coupon income that can be earned now, our outlook remains positive for the next 12-to-18 months across global fixed income markets.
• In 2026, the impact of the U.S. fiscal and tax package should push growth back toward trend.
• Principal Global Investors expressly disclaims all liability for errors and omissions in the materials on this website and for the use or interpretation by others of information contained on the website.

Because we employ only team-managed funds in our models, and because ETFs offer daily holdings transparency, the team has real-time look through into every holding across the entire GA Selects platform. Through BlackRock’s Aladdin risk and trading platform, we are able to see every holding in each model in real-time. By incorporating our flexible, team-managed active funds as the foundation of the GA model suite, our team is able to invest with an elevated degree of investment accuracy. Our Portfolio Managers and Analysts pick the stocks, the bonds, the currencies, and the hedges that go into our active funds.

GA Aviator Tax-Aware

The Monetary Authority of Singapore has not, in any way, considered the investment merits of the funds and assumes no responsibility for the contents of the website and/or that of the Information Memorandum. We are able to trade the underlying holdings inside our team-managed funds daily, which means the GA Selects models are Always On – each day that markets are open – not just the days we are rebalancing our mutual fund and ETF holdings. These synchronized adjustments across our team-managed funds provide us the flexibility to refine the positioning of the GA Selects models as market conditions change. Asset allocation is the process of dividing an investment portfolio among different asset classes, such as stocks, bonds and cash and so on.

Supported by BlackRock’s dedicated investment professionals

The information in the following website should not be construed as investment advice or a recommendation for the purchase or sale of any security. The value of investments and the income from them may fall as well as rise. The information in this website has been developed internally and/or obtained from sources that the Firms believe to be reliable; however, the Firms do not guarantee the accuracy, adequacy or completeness of such information and are not responsible for any errors or omissions. This global asset allocation website also contains videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions.

It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The last quarter has seen positive returns across all 14 global asset classes we track. Cyclical assets, equities, commodities, private equity, and REITs led the way, reflecting a recovery from earlier uncertainty around US trade policy. We think the global economy could accelerate, despite a slowing US economy and that the Fed is about to embark on rapid easing.

Seasonal weakness and a stretch for risk

• Outside the U.S., tariffs represent a disinflationary impulse, particularly in goods markets.
• In the U.S., the “Mag-7″2 tech stocks have both valuation and earnings support, while the remainder of the S&P 500 trade close to all-time peak valuations. Since we expect tech adoption to continue to drive rapid earnings growth in the sector, we tilt our U.S. exposure to tech and communication services.
• T. Rowe Price is not responsible for the content of third party websites, including any performance data contained within them.

Scotia Global Asset Management is not responsible for updating the information and views expressed. To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but Scotia Global Asset Management does not guarantee its accuracy or reliability. The BlackRock model portfolios are provided for illustrative and educational purposes only. Such financial professionals are responsible for making their own independent judgment as to how to use the BlackRock model portfolios. BlackRock does not have investment discretion over, or place trade orders for, any portfolios or accounts derived from the BlackRock model portfolios. BlackRock is not responsible for determining the appropriateness or suitability of the BlackRock model portfolios, or any of the securities included therein, for any client of a financial professional.

Outside the U.S., tariffs represent a disinflationary impulse, particularly in goods markets. This environment allows central banks in Europe and Asia to adopt a more dovish policy setting without triggering inflation. Looser financial conditions are an upside risk for growth outside the U.S. and may serve to narrow the U.S. vs. rest of world growth gap in 2026. In connection with its management of client portfolios, PGIE may delegate management authority to affiliates that are not authorised and regulated by the Financial Conduct Authority. In any such case, the client may not benefit from all protections afforded by rules and regulations enacted under the Financial Services and Markets Act 2000.

None of Principal Global Investors (Australia) Limited or its related entities (together “Principal”) guarantee the accuracy, completeness or timeliness of the information on this website. Information may become outdated and opinions may change, including as a result of new information becoming available or changes in the markets. To the extent permitted by law, Principal does not accept any responsibility arising in any way (including by reason of negligence) for errors in, or omissions from, this information.

Enhanced risk management & alignment

We expect the global economy to grow modestly as monetary and fiscal policy remains accommodative. The outlook has improved as U.S. trade policy and its global impact has become clearer. The SICAV and ETF products on this website are authorised overseas, not in the UK. The UK Financial Ombudsman Service is unlikely to be able to consider complaints about them, their management companies, or depositary. Any losses related to their management company or depositary are unlikely to be covered by the UK Financial Services Compensation Scheme.

Fixed income investments are subject to risk including interest rate, credit, market and issuer risk. Currency exchange rates may cause the value of an investment to go up or down. Alternative strategies involve higher risks than traditional investments, may not be tax efficient, and have higher fees than traditional investments; they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain.

Paco

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