“Over November and December the equity markets maintained their upward trend. Government bond interest rates remained steady, anchored by accommodative monetary policy. Given this environment, our equity, credit and convertibles exposure did well. We are expecting economic growth to gradually reach its potential in the US and Europe, so have increased our holdings on equities through the Franklin Mutual Beacon fund, our US equity bet, and BNP Paribas Convertibles Europe. We trimmed euro government bonds, considering the risk to be asymmetric given the low level of long-term rate.”