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With Fed chairman Jerome Powell opening the door to a rate cut in September, last week’s Jackson Hole symposium reinforced our forecast of two reductions this year. Global equities closed on a positive note, buoyed by the policy easing. However, the impact of tariffs must be fully assessed over the coming weeks.

An executive order is opening the door for private assets to access US defined-contribution pension schemes.

The Middle East stands on the cusp of an unprecedented generational wealth transfer, with an estimated US$1 trillion poised to change hands by 2030.

ESMA’s recent guidance on fund naming has brought greater clarity and more concrete expectations for funds making sustainability or impact-related claims.

The latest US inflation data confirm that price pressures are set to trend higher in the coming months. Nevertheless, rate cuts remain on the table given the slowdown in the labour market. As earnings season winds down after a solid set of results, market attention will shift to GDP developments and leading indicators, as well as to the Fed’s annual Jackson Hole meeting on Friday.

UBP’s Alternative Investment Solutions team reports strong performances and share their strategic insights for Q2 2025, showcasing adaptability in a volatile global market. The quarter was marked by significant geopolitical and economic uncertainties, yet hedge fund strategies delivered solid results, with several standout performers.

Even the slightest regulatory decision or change in the international environment can affect the availability of financing, access to cash, or the perceived solvency of certain counterparties.

Overly defensive positioning has failed to benefit from fluctuations stemming from tariff tensions.

The prospect of continued Fed rate cuts will weigh on the US dollar

Relief from US tariffs has fuelled renewed optimism, though commercial frictions remain, notably with India and Switzerland. Hope of a Russia–Ukraine ceasefire and rising expectations of a Federal Reserve rate cut have further buoyed equities. However, with equity valuations increasingly stretched, markets may face bouts of short-term volatility.

While the US earnings season has underpinned the equity rally, emerging risks – such as tariffs slowing the economy and fuelling price pressures – warrant investors’ attention. However, these risks remain insufficient to prompt a shift in our portfolio positioning, and we continue to maintain a broad diversification across asset classes.