In this quarter’s edition, we explore three themes shaping today’s investment landscape – and likely to influence market outcomes and client decisions in the months ahead. First, the continued conflict in the Middle East and its implications for global markets. Beyond the humanitarian impact, persistent instability is reshaping energy dynamics, supply chains and the geopolitical backdrop that underpins asset pricing. Second, the role of private markets in an environment of structurally elevated inflation. We revisit our long-held conviction in their importance within resilient portfolios, alongside the forces shaping the opportunity set today. Third, the active versus passive debate – and why we believe its framing is becoming less helpful. In a complex market defined by concentration risk, divergent fundamentals and rapidly shifting macro conditions, the idea of passive as the ‘neutral’ option warrants closer scrutiny.

Taken together, these themes reinforce a core belief: that enduring outcomes require active stewardship and a willingness to look beyond consensus. We bring this together in our capital markets outlook, outlining how it informs PruFund’s current positioning and asset allocation this quarter.

We hope this edition offers clarity, fresh perspective, and supports your client conversations on long-term investing.