00:00Our positioning going into this situation has been to have a relatively neutral exposure to equities,
00:05but with a very strong preference for markets outside the U.S.
00:10So within that neutrality in equities, actually having some very specific bets,
00:15for example in Asian markets, which even after the strong volatility we've seen in the past couple of weeks,
00:21they're still up considerably over the years in fluking markets like Korea, for example.
00:26We have seen some very strong returns there at the end of 2025 and again into this year.
00:32What we've also entered this phase with is actually a relatively large amount of cash,
00:38and that has been very helpful in a situation in which actually we haven't had many assets diversifying out in
00:45this phase.
00:46And very interestingly, you know, even assets that in 2025 had seen as a potential diversifier,
00:53like gold, has proven actually to be very unreliable in this phase.
00:57The dollar, I would say, has probably been the only area where we've seen a bit of diversification,
01:01certainly not on government bonds, although it's still an area that we do like.
01:06And we think that maybe this reaction into this latest week has been a little bit overdone
01:10and might present some opportunities as well.
01:12OK, so interesting.
01:13So you keep some cash and you say that that means that when you see dislocation in these markets,
01:17you're able to able to reinvest.
01:19I mean, have we seen dislocation that encourages people into these markets?
01:23And if so, which assets?
01:24Well, I think what we've seen so far is actually been a very measured response to a development of events.
01:32It is pretty important for the global economy, obviously in different ways,
01:37depending on the different regions and how reliant they are in on oil or on gas.
01:42But certainly a very, very important set of events from an economic standpoint.
01:46And the reaction so far, especially in equity, I would say has been relatively muted.
01:50Obviously, today we're seeing a little bit more volatility.
01:53But if you look at also the markets that have sold off the most are actually those that have gained
01:57the most
01:57in the previous weeks and months.
01:59So there's been a sort of profit taking, more the complete risk off on this market.
02:04So at the moment, we don't see opportunities to re-engage yet in the equity complex at large.
02:10Obviously, there might be some selected opportunities.
02:13For example, Indonesian equities have been particularly weak.
02:15So at the margin, I think a little bit of diversification there.
02:19But all in all, I think the response has been very muted.
02:22Where it has been less muted has probably been on government bonds,
02:25where we have seen a reaction function that was very significant.
02:30Obviously, there is risks of inflation re-accelerating.
02:34And, you know, the energy drive, it's very important, both from a direct consequence,
02:39but also the indirect consequence towards inflation.
02:43But the move we've seen is very, very significant.
02:46And I think it might start providing at the edges some opportunities,
02:51especially because it feels like at the moment the market is pressing in this inflation risk,
02:56but it's not really pressing in the growth risk that could come with it should this tension and conflict remain
03:03quite extended.
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