"Despite elevated geopolitical tensions and trade uncertainty, valuations in many developed equity markets continue to benefit from easier financial conditions and supportive policy settings. While recent performance has been strong, the global economy remains fragile, and we expect an environment more susceptible to downside shocks and volatility. Over the medium term, AI, debt dynamics, trade and fiscal policy sustainability, and geopolitical shifts are likely to dominate market focus. Over longer horizons, protectionism, a multipolar world, populism and waning US exceptionalism may reshape the global order. Amid persistent uncertainty, we remain open-minded to policy and market paths, focusing instead on enhancing the resilience and diversification of State Investment Portfolios through active, uncorrelated and yield-based strategies offering attractive risk-return profiles."

Allison Hill, QIC State Chief Investment Officer