"The Iran war raises inflation risks"

The economic recovery that began in 2025 has encountered renewed headwinds, alongside the impact of Trump’s tariffs. The full economic consequences of the Iran war remain uncertain, but the conflict adds to the risk of a global economy characterised by higher inflation and elevated interest rates. During the first quarter, the portfolio benefited from a significant overweight in Nordic high yield bonds. Floating-rate coupons provide effective protection against rising interest rates. The risk of higher inflation and stagflation is likely to weigh disproportionately on smaller companies. Ahead of the second quarter, we are therefore reducing our exposure to small cap equities while increasing our allocation to bonds.

Market Outlook
✔️ High yield: Demonstrating strong resilience
✔️ Equities: Reducing exposure to small cap stocks
✔️ Interest rates: Increasing allocation to bonds
✔️ Megatrends: Adds to renewable energy

Read the full Portfolio Strategy 2026Q1 from Vinga Asset Management: https://vingagroup.com/wp-cont...