Iza Global Stable Portfolio

Objective and Strategy: The portfolio aims to achieve returns in excess of UK CPI + 3% p.a. over rolling three year periods. Over any three year rolling period the portfolio should always deliver a positive return. Portfolio returns will be generated through  interest income, dividend income and capital growth. The portfolio benchmark is the EAA Fund GBP Cautious Allocation category. The portfolio is a  multi-manager portfolio ideally comprising at least two underlying funds and not more than six. Fund selection will be bias towards high Sortino ratios, low downside standard deviation and to managers and funds that have successfully navigated sustained negative market conditions. Where possible underlying funds will be given as many of the asset allocation decisions as possible. Underlying investments will be held in multiple first world currencies, however, all performance and risk statistics will be in GBP.

With U.S. benchmarks hovering close to record highs again, a great deal of optimism is embedded in prices, which naturally narrows the margin for error. October itself was a study in cross-currents. Developed market equities advanced while global bonds slipped modestly, a mix that reflected progress on U.S.–China trade diplomacy, another better-than-feared U.S. earnings season, and renewed pressure in parts of credit and securitized debt. The macro backdrop also helped: inflation data continued to lean softer, and central banks signaled a willingness to ease further if disinflation persists, even as they kept a close eye on growth.

Late in the month, trade discussions between Washington and Beijing set a more constructive tone than markets had braced for. Both sides outlined the contours of a one-year understanding that would pause the drift toward higher U.S. tariffs and temper planned restrictions on rare-earth exports from China, a critical input for electric vehicles, defense technologies, and the AI compute supply chain. Although the talks stopped short of a formal agreement, simply shifting from escalation to guardrails was enough to lift sentiment and reverse a mid-month equity wobble that had followed tough rhetoric earlier in October.

The U.S. macro narrative continued to improve at the margin. Headline and core inflation surprised to the downside, and while some tariff pass-through was visible in goods categories, it was less forceful than feared. Services and shelter measures remained on a disinflationary trajectory. Against that backdrop, the Federal Reserve delivered another 25 basis point cut, taking the target range to 3.75–4.00 percent. Chair Powell then stressed that December was not on autopilot, signaling the Committee would watch the incoming data and financial conditions before deciding on any additional move. Markets took that as a nudge toward patience, dialing back some of the easing priced for the next twelve months and allowing the front end of the curve to steady.