Barometer: Analyzing 2Q portfolio trends

Despite geopolitical and economic uncertainties, global equity markets delivered strong double-digit gains in Q2, largely propelled by robust earnings. Advisors maintained a strong conviction in active management, keeping allocations at 80%, while strategically reducing portfolio risk and correlation.

A notable trend was the continued shift towards global diversification, with international equity exposure reaching a new high as domestic allocations decreased. Within equities, there was a clear rotation towards growth and technology sectors, reflecting their strong performance and investor demand.

Fixed income portfolios saw an extension in duration and a move towards higher-quality investment-grade credit, signaling a defensive stance. These shifts collectively underscore a measured approach to portfolio construction, balancing market participation with prudent risk management and a focus on diversification.