We review our style positioning:
1) We increase the size of our overweight in European small cap. We also add to US small cap, thus reversing our previous cautious stance;
2) We take UK small cap to underweight;
3) We stick to an overweight of short-duration growth in the US, and remain benchmark in Europe;
4) In Europe, dividend aristocrats are pricing in a 2.5% Bund yield, and hence we are benchmark. We would focus on high, well covered yields, with positive DPS momentum;
5) Elsewhere, we remain benchmark of beta, which is neutrally valued.