Dear all,

Markets remained uneasy last week primarily due to heightened nervousness about upcoming tariffs and the potential fallout for global trade. Adding to the uncertainty, softer-than-expected Eurozone data suggested a more cautious stance from policymakers, while weaker US consumer sentiment served as a reminder that ongoing trade frictions may weigh on domestic growth. Against this backdrop, equities and crypto assets experienced another round of choppy price action, prompting us to maintain a conservative approach. However, our longer-duration fixed income positions are beginning to perform, both in light of sour risk sentiment and because our now-cast for global growth is not looking strong. Meanwhile, our short copper exposure benefited from lingering questions around global manufacturing demand.

Meanwhile, gold is still supported by tariff headlines and potentially by flight to safety. We remain short gold through derivatives, ensuring we retain control of tail risk; hence, the maximum loss is known in advance. Heading into the new month, we have re-engaged in short USD FX, anticipating a broader trend of a weaker USD that may only be paused by risk aversion. Next week will be very important for risk sentiment and will likely determine the direction of travel across assets for months to come.

Overall, we are pleased with our performance through March, having returned 0.45% and now up 2.49% year to date. Thank you for your continued support, and please reach out to book a meeting with our onboarding team to discuss how these latest developments might affect your investment strategy.

All the best,

Claus Venderby Hornsleth, Chief PM