September 22, 2025

Asset Allocation Insights - September 2025

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Quarterly report

Tailwinds continue for International Equities and Emerging Markets. Falling intra- and inter-asset class correlations highlight diversification as key to support portfolio returns

Key highlights:

  • Macro backdrop of slowing growth and higher inflation
  • Where do sovereign yields go from here?
  • Tailwinds continue for international equities
  • A sharper rally in risky equites relative to macro backdrop calls for a greater role for fixed income
  • Re-rating of emerging markets (EM) continues with strong momentum
  • Alternatives: Listed infrastructure and commodities (mainly gold) highly accretive in portfolios
  • Potential for US dollar weakness to continue with implications for currency returns and hedging
  • Decoupling (inter-asset class and intra-asset across regions) increases diversification opportunities

Published quarterly, this report covers:

  • Key macroeconomic influences and their implications for financial markets
  • Core drivers across asset classes – and what they are indicating
  • Cross-asset analysis – expectations, risk premiums, return and risk, correlations and more · Implications for asset allocation and portfolio construction
  • Market analysis provided exclusively via our indices, and LSEG and Lipper fund flows data – enabling apples-to-apples comparisons across asset classes and global markets

To support your investment decision-making, we produce specialist content that provides analysis and insights on a range of investment topics. Go to our hub for valuable Market Insights.

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Webinars

9 October

Global financial markets outlook

Presented by Indrani De, CFA, PRM, Head of Global Investment Research and Henry Morrison-Jones, CFA, Manager, Global Investment Research

15 October

Fixed Income Insights (Global)

Presented by Robin Marshall, M.A., MPhil, Director, Global Investment Research, Sandrine Soubeyran, Director, Global Investment Research