Moderately Cautious Portfolio

Investment Objective

This portfolio aims to provide a low to moderate risk solution to clients looking for attractive risk-adjusted returns over the long term by investing primarily in fixed interest and equities, with the balance in alternative investments and commodities.

Portfolios are populated with a mix of passive and active funds, and the asset allocation managed tactically within the boundaries of the low to moderate risk mandate as adjustments are made to reflect short-term opportunities in the marketplace.

Key Features of the Moderately Cautious Portfolio

The portfolio employs a diversified multi-asset approach, balancing defensive positioning with increased exposure to long-term growth assets:

• 67.00% Fixed Interest — Government and corporate bonds providing portfolio stability and income generation
• 22.50% Equities — Diversified global equity exposure designed to support long-term capital growth
• 6.50% Alternatives — Infrastructure and commodities helping improve diversification and inflation protection
• 4.00% Cash — Liquidity management and reduced short-term volatility

Portfolio Performance

Data as of 31st December 2025 | Source: FE fundinfo

Past performance is not indicative of future performance.

Current Holdings

As at 31st December 2025 | Source: Quartet Investment Managers

Manager’s Commentary

Global markets ended Q4 2025 on a resilient note, with equities grinding higher despite ongoing political noise, patchy data, and lingering inflation concerns. Global equities posted solid gains, supported by strong corporate earnings in the US and improving sentiment towards interest-rate-sensitive sectors.

US equities outperformed other regions, driven by earnings momentum and enthusiasm around productivity gains from artificial intelligence. European and UK markets lagged somewhat, reflecting weaker economic growth and continued political uncertainty, though both still delivered positive returns. Emerging markets delivered mixed but improving performance, with gains in parts of Asia offset by ongoing challenges in China and currency volatility across several regions.

The quarter was marked by the aftermath of the record-long U.S. government shutdown, which obscured official economic data and forced investors to lean more on corporate earnings and private surveys to gauge momentum. Inflation pressures moderated but remained above central-bank targets in many economies, allowing bond markets to stabilise as investors grew more confident policy rates were at or near their peak.

The U.S. dollar stayed under pressure, a notable support for sterling-based investors in overseas assets. Commodity markets were mixed. Gold continued to attract flows as a hedge against policy and geopolitical risk; oil prices, by contrast, were volatile but broadly lower on concerns about demand.

Data as of Q4 2025 | Source: Quartet Investment Managers

Important Information

This factsheet is issued by Quartet Capital Partners LLP of 16 Water Lane, Richmond TW9 1TJ; a limited Liability Partnership registered in England OC345770 and authorised and regulated by the Financial Conduct Authority (Financial Services Register 502242). This document is for professional FCA authorised and regulated intermediaries based in the UK only.

Client portfolios linked to the Quartet portfolio may not exactly replicate the model portfolio due to the timing of the initial investment or rebalancing differences. The Quartet portfolios will not be suitable to all investors. The publication does not constitute advice. The value of investments and the income from them can go down as well as up, and investors may not receive back the amount that they originally invested. Past performance is not a guide to future performance.