Tactical Trade Update March 2026

OMPS - Tactical Trade Update March 2026

On 10 March 2026, we initiated instructions to conduct two trades and a full rebalance of the OMPS portfolios.

Here is a summary of the changes:

Summary

• We reduced exposure to US Large Caps through the Omnis US Equity Leaders Fund. Excessive market concentration and stretched valuations following the AI-induced equity market rally sees us cautious on the outlook for US Large Caps. In addition, we believe that any further escalation in the Middle East could pressure equity valuations, with equities largely priced for a quick resolution. The rise in oil prices remains the key area of concern, given the potential to result in rising inflation, which could derail the pathway to further interest rate cuts.

• Given our concerns over elevated equity valuations, we have reallocated funds from the sale of the Omnis US Equity Leaders Fund into the Omnis Global Bond Fund. Global bonds are currently paying an attractive coupon and we would expect them to perform well in an environment where equities come under pressure.

• We also rebalanced the portfolios to ensure the portfolios are in line with our latest investment thinking.

Agility - Tactical Trade Update March 2026

Omnis Agility combines the Omnis range of funds with carefully selected Exchange Traded Funds (ETFs) that give us access to additional investment opportunities. This week we made some changes to the portfolio to reflect a change in our tactical asset allocation positioning. In this document, we detail the thinking behind these trades.

Summary

• On 10 March 2026, we initiated instructions to conduct 4 trades and a full rebalance of the Agility portfolios

• Decreased US Large Caps; exited the US Energy ETF; added Japanese government bonds through two ETFs

  
  

Reducing US Large Companies

• We further reduced exposure to US Large Caps through the SPDR S&P 500 UCITS ETF.

• Excessive market concentration and stretched valuations following the AI-induced equity market rally sees us cautious on the outlook for US Large Caps.

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Exited US Energy Tactical Position

• The Energy sector has been the best performing US sector since we added a tactical position in the portfolio back in December 2024.

• The Middle Eastern conflict has seen an aggressive rally in the energy complex, further benefiting the sector. Uncertainty is high regarding the duration of the conflict and how long-lasting the impact on markets will be.

• Crystallising profits following a strong return and removing tactical Energy positioning.

  
  

Adding Japanese Government Bonds

• Japanese bond yields have risen considerably and now seem to reflect overly optimistic expectations for Japan’s future growth and inflation.

• The Japanese Yen has weakened in recent years and looks attractive on multiple valuation measures, especially given its usual role as a safe haven.

• Together, these factors make short dated Japanese bonds appealing if you keep the currency exposure (benefit from a rising Yen), and longer dated bonds attractive if you hedge the currency (mitigate currency risk due to inherent higher volatility).

• Adding a short-dated Japanese government bond ETF and a broader Japanese government bond ETF

(hedged).