It has been a ‘risk-on’ month, resulting in positive returns from global equity markets and a less favourable backdrop for perceived safe-haven assets as highlighted in the chart below of the major indices over the month.

It has been Donald Trump and trade tariffs that have again dominated headlines and markets over the month. Despite this ongoing geopolitical headwind, equity markets have improved over the month after a few weeks of relative calm.

The initial positive reaction to the US-China trade talks commencing have somewhat stalled if we believe the comments made recently by US Treasury Secretary, Scott Bessent. The US focus may have temporarily switched across to Europe and following fears over a 50% tariff on EU imports, effective June 1st, the announcement of a month’s delay has avoided any significant market reaction.

Behind the market moves is a deeper unease about Washington’s broader economic direction. The recently passed “Beautiful Budget Bill” has raised fiscal concerns, adding to investor nerves. Combined with the tariff announcement, these developments have injected a risk premium into U.S. financial assets. Many analysts now believe the U.S. administration is opening too many economic fronts at once, creating uncertainty across global markets.

The US economy continues to show early signs of slowing down in some areas but for now corporate fundamentals remain in good shape and we continue to watch how this unfolds, and markets are likely to remain volatile in the short term as trade policies evolve.

Portfolio Changes

Given the ongoing volatility and trade uncertainty, we have taken the decision to trim our US exposure slightly and reinvest with a broader global mandate, and in particular to gain additional European exposure. Within the Boolers Investment Funds, we have sold our position in the Schroder US Mid Cap Unit Trust and reinvested within the Artemis Global Income Unit Trust.

Tax Reports

The annual Consolidated Tax Reports are currently being prepared and will be issued to clients shortly. These will be issued via our Wealth Focus App or via the post where paper copies have been requested.

Boolers Investment Committee