Global markets are showing unexpected resilience, fueled by strong corporate earnings and sustained capital spending. Patricia Ribeiro, co-chief investment officer of global equity, notes that while AI remains a primary driver, the benefits are now flowing into a broader array of industries. This expansion allows for a more diverse investment approach, targeting sectors that are increasingly vital to the global infrastructure supporting AI.

Simultaneously, the fixed-income landscape is undergoing a significant transformation. Charles Tan, chief investment officer of fixed income, observes that massive debt issuance by hyperscalers to fund data centers and power infrastructure is reshaping capital demand. This trend is a key factor in the rising Treasury yields seen globally. Rather than being a localized issue, these higher yields reflect a synchronized international response to government deficits and inflation. The firm emphasizes that in such a volatile environment, disciplined security selection remains the most effective strategy for navigating macroeconomic risks.