- Multi-Asset Portfolio Manager
United States, Institutional
Change
This is a monthly snapshot of Wellington Solutions’ asset allocation views as of June 2026. It covers global equities, bonds and commodities and complements the more detailed analysis we share in our Quarterly Asset Allocation Outlook
Key*
*Please note that we use a more detailed key in our Quarterly Asset Allocation Outlook.
We maintain our overweight stance on global equities. Despite geopolitical headwinds, companies continue to generate strong earnings and the global economy remains resilient, with some regional variation. We expect earnings growth to remain buoyant, though driven largely by demand through the AI supply chain. Regionally, we favour emerging markets (EM) over Europe, while taking a neutral view on the US and Japan.
US
We hold a neutral view on US equities. Earnings growth remains robust and valuations appear broadly reasonable. At the same time, a strong pipeline of IPOs is likely to drive positive to neutral net issuance this year. While we expect the market to absorb this additional supply, higher issuance could act as a modest headwind for returns over the coming 12 months, supporting our neutral stance at present.
Europe ex-UK
We retain our modest underweight stance on Europe ex‑UK equities. Earnings expectations remain too optimistic, while stagflationary risks appear more relevant in the region. France and Germany face ongoing competitive pressures from China and political uncertainty in France ahead of the 2027 presidential election could weigh on sentiment.
UK
We continue to hold a modest underweight stance on UK equities. Growth and earnings momentum lag other regions, particularly emerging markets, while the domestic backdrop remains challenged by fiscal, political and inflation uncertainty.
Japan
We maintain a neutral view on Japanese equities. Corporate reforms, improving return on equity and strong buyback activity remain supportive. However, more stretched valuations and the potential for interest rate and currency volatility temper our outlook, supporting a neutral stance.
Emerging markets
We retain our overweight view on EM equities. Strength across Asia’s AI supply chain, improving policy support and resilience in China, coupled with attractive valuations, continue to support the region. Growth and earnings momentum also compare favourably against developed markets, particularly Europe, underpinning our overweight stance.
We retain a modest overweight stance on global duration. While yields moved slightly lower after the US and Iran began discussing a peace deal, they remain elevated given continued inflation risks and hawkish central bank positioning. Against this backdrop, elevated nominal and real yields still support the case for duration.
US
We are neutral in our view on US rates. Yields remain elevated, offering a more attractive valuation backdrop than in recent years. However, the US is still relatively exposed to inflation and fiscal risks, which informs our neutral stance for now.
Europe ex-UK
We maintain a neutral view on Europe ex‑UK government bonds. We are monitoring the evolving fiscal backdrop, particularly in France, where political uncertainty and fiscal slippage are becoming more relevant. Higher defence spending across the region could also add to longer-term supply and fiscal pressures. These are areas we are watching closely, while remaining comfortable with a neutral stance for now.
UK
We maintain a neutral view on UK rates. Fiscal credibility concerns, sticky inflation, policy uncertainty and questions around the credibility of the Bank of England’s monetary policy continue to present challenges for gilts. Against a backdrop of elevated domestic political risk, these factors support our neutral stance.
Japan
We remain comfortable with our neutral view on Japanese rates. Inflation risks have increased as the Bank of Japan continues to normalise policy; however, much of this is already reflected in market pricing. With carry costs among the highest across regions, we currently see limited appeal in initiating a position in Japanese government bonds.
Our overall stance on credit remains neutral. While all-in yields are still attractive, spreads have tightened significantly. Corporate fundamentals remain broadly supportive, but the overall risk/reward profile appears balanced at current valuations, supporting our neutral stance.
Investment-grade credit
We maintain a neutral stance on investment-grade credit. Fundamentals remain resilient and all-in yields continue to provide attractive income. However, recent spread tightening leaves less room for upside potential, informing our neutral view.
High yield
We still think a neutral view on high-yield credit is justified. Similar to investment grade, spreads have tightened and while carry remains attractive, valuations are less compelling at current levels, leaving us comfortable remaining on the sidelines for now.
Emerging markets
We remain neutral on EM debt. Recent geopolitical developments have reinforced the potential for periodic volatility across markets, and we are therefore comfortable maintaining a neutral stance.
We maintain a modest overweight view on commodities, driven by our upgraded stance on oil. Following the sharp price decline, we believe much of the expected medium term increase in supply is already priced in. However, the continued uncertainty surrounding Middle East exports, demand growth and the uncertain pace of supply growth could still support prices. On gold, we moved to neutral from our previous overweight stance. While central bank buying continues to provide support, we see less scope for further upside and remain mindful of the risk posed by a potentially stronger US dollar.
These asset allocation views are produced by Wellington Solutions, which provides client-centred investment solutions, research and advice ranging from whole portfolio solutions to bespoke single asset class and advisory partnerships. Our solutions platform incorporates expertise across multi-asset, fundamental factor investing and thematic approaches to deliver across a range of client outcomes and objectives. If you wish to discuss your investment challenges, and how Wellington Solutions can help, please contact your Wellington relationship manager or solutions@wellington.com.
Disclosure
For professional and institutional investors only. All investing involves risk. Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. If the strategies do not perform as expected, if opportunities to implement them do not arise, or if the team does not implement its investment strategies successfully, then a strategy may underperform or experience losses. Past performance is not a reliable indicator of future results and investments can lose value.
This material is prepared for, and authorised for internal use by, designated institutional and professional investors and their consultants or for such other use as may be authorised by Wellington Management. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management. This material is not intended to constitute investment advice or an offer to sell, or the solicitation of an offer to purchase shares or other securities. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund.
Any views expressed herein are those of the Wellington Solutions, are based on available information and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. While any third-party data used is considered reliable, its accuracy is not guaranteed.
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results.
The views expressed are those of the authors at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional or accredited investors only.
Experts
- Multi-Asset Portfolio Manager
- Investment Specialist
Monthly Market Review — June 2026
A monthly update on equity, fixed income, currency, and commodity markets.
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