Mediolanum Maintains Neutral Stance Amidst Global Market Volatility

Christophe Jaubert, chief investment officer at Mediolanum, confirmed the firm maintains neutral exposure across major regions, including the US, Europe, Japan, and emerging markets. Despite initial defensive posturing following the onset of Middle East conflicts, the firm returned to a neutral stance as broader market reactions remained muted. Jaubert expressed confidence in the US economy, citing the sustained impact of the AI cycle, though he highlighted mounting debt concerns as a structural disadvantage for European nations like France, Spain, and Italy, where high tax rates limit fiscal flexibility.

Portfolio strategies are shifting to capture specific regional value. While the firm remains neutral on US equities due to high valuations, it is actively rotating capital within the tech sector. Patrick McKenna, deputy head of portfolio management, noted a trend of selling US tech holdings in favor of opportunities in Asian markets, specifically highlighting the growth potential of semiconductor leaders like TSMC, SK Hynix, and Samsung. Meanwhile, the fixed income team, led by Martin Reeves, favors UK high-yield assets, viewing them as undervalued, while remaining underweight in French high-yield bonds due to lingering economic uncertainty.

Beyond traditional asset classes, the firm is diversifying into gold, which now comprises up to 15 percent of some portfolios. Executives also underscored the strategic importance of Ireland as a fund domicile, noting its role in managing over €5 trillion in assets. As the firm navigates 2027 election risks in France and potential energy-price sensitivities in India, the core strategy remains rooted in active management and a selective approach to duration and credit quality.