Waystone Risk‑Managed SAA Review

We have entered a new and increasingly uncertain economic regime, characterised by shorter and more volatile cycles. In this environment, the importance of robust diversification across asset classes and regions is heightened.

The global economic environment has shown resilience; however escalating geopolitical tensions and persistent trade uncertainties may begin to weigh on market sentiment. Recent developments between Iran and Israel have elevated risk levels, while delays in implementing tariffs at the scale initially proposed, have provided only temporary relief. We anticipate that markets will remain highly responsive to further geopolitical and policy shifts.

Although private markets have encountered headwinds in recent years, we see meaningful reasons for optimism as the base effects that have helped drive inflation lower over the past year begin to fade.

While fixed income and equities can continue to act as diversifying components within portfolios, the ongoing threat of inflation and elevated financial risks reinforce the appeal of real assets. We maintain our commitment to a broad and balanced mix of asset classes that generate tangible cash flows, offering genuine diversification and low correlation to the economic cycle – especially in inflationary regimes.

This content has been prepared by M&G Life Investment Office (LIO) for information purposes only and does not contain or constitute investment advice. Information provided herein has been obtained from sources that LIO believes to be reliable and accurate at the time of issue but no representation or warranty is made as to its fairness, accuracy, or completeness. The views expressed herein are subject to change without notice. Neither LIO, nor any of its associates, nor any director, or employee accepts any liability for any loss arising directly or indirectly from any use of this document. The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back less than the original amount invested and past performance information is not a guide to future performance.

‘M&G Life Investment Office (LIO)’ includes the team formerly known as Prudential Portfolio Management Group (PPMG), Prudential Portfolio Management Group Limited, is registered in England and Wales, registered number 2448335.

M&G Investment Management are the investment managers for the WS Prudential Risk Managed Active and Risk Managed Passive Funds. They make the relevant adjustments to the portfolios based on LIO recommendations.