This week we bring our 3 part series to a close with the launch of our strategic asset allocation breakdown for 2026. We have used the PIMFA Balanced portfolio model as the generic base. The biggest difference between our allocation perspective and that of the generic model is around country bias. 

The generic model is based on the global balanced portfolio from a UK based investor. However, unless one is a US resident, most investors will also face over compensation allocation issues to their jurisdictions. 

In the case of the UK, the generic model is suggesting a total UK exposure (be it equity, bond, Real Estate or currency) at 42%. Given that the UK accounts for less than 3% of global GDP, we have set the total UK exposure at 4.2%. We’re not keen anyhow on the UK opportunity be it equity, bond or currency. 

The other major differences is our higher exposure to International equities and within that to the US. We suggest bond holdings both at government and corporate levels be spread internationally and not UK and Global Emerging Markets, Gold & commodities exposure and the Japanese Yen as a hedge against a potentially weak USD. 

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