Q4 2025
MPS QUARTERLY UPDATE
What were the key changes this quarter?
We reduced our UK equity allocation in Real 3 and Real 4, taking some profits after recent strong performance. The situation in the UK remains challenging and political risk remains, with a potential leadership change a tail risk that could cause a spike in volatility. Whilst this is not our base case, the probability of such an event is rising.
We increased the weight in fixed income in Real 3, where yields remain attractive, and there is opportunity for capital appreciation as interest rates continue to decrease.
In Real 4, we marginally increased our weight towards the US and International, as several funds we hold in the space offer more attractive valuations than those often seen in such markets. These funds are diversified in nature, allowing us to steer away from elements of the markets that appear expensive.
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