Asset Allocator caught up with Nathan Sweeney, the chief investment officer for multi-asset solutions at Marlborough, who revealed he has started to pivot towards UK equities and government bonds.
He is confident enough that rates in the UK will be cut to increase his allocation to gilts, as he feels the cuts will help to support the gilt price while the yields are attractive right now.
Sweeney is also keen on UK equities for a similar reason: that he views rate cuts as likely to help equity markets while valuations remain cheap.
He added that the UK doesn’t have a big trade deficit with the US, meaning the economy should be relatively insulated from the direct impact of tariffs, albeit all economies are impacted if global trade flows decline.
While many allocators have looked to European equities for solace amid the turbulence of 2025, Sweeney is more circumspect as he feels debt levels remain high while the impact of tariffs…
