The adjustments include introducing an allocation to emerging market debt (EMD) across portfolios. While the firm’s stance on EMD remains neutral, it sees it as a structurally underrepresented segment of global government bond markets which provides diversification benefits to a portfolio.

SJP has also reduced exposure to higher-risk credit assets in developed markets, where spreads have become increasingly tight.

Although US equities remain the cornerstone of many investors portfolios, the move comes at a time when geopolitical worries, including concerns about a weakening dollar and trade frictions, have weighed on minds.

, highlighted recently that emerging markets outperformed developed markets in 2025 and could do so again in 2026, supported by a weaker US dollar. See more here and here.