We are still quite positive on equity markets. Investor sentiment is quite strong, we have good momentum, and the massive amounts of capex we are seeing is a good long-term signal for equity markets. Valuations are probably the main detractor, but that is outweighed by those other factors.

We have more information technology and we recently increased that. We also have a fairly large exposure to communication services, which are both front and center in the AI trade. We have a bit of energy as well, which came in around March-April.

When you look at those sectors, you see strong earnings revisions upward, actual earnings coming through, and high capex cycling back into hardware providers, providing certainty of buying power into the future.

There are short-term issues, but also longer-term demand for power related to AI. Oil prices will fall if the Strait opens up, but longer-term you have a lot of demand that needs to be met. We get a lot of innovations to run chips with less energy, but I don't think the volume of compute will be achieved without more energy.

I am a bit reticent about the exceptions made to put things into indices straight from the get-go. It doesn't give passive investors the choice or certainty of having tested stuff in the index. There is a lot of enthusiasm, and there probably is enough capital, but there will be a negotiation on how much people are willing to pay.

Right now, what you are seeing is testing the market to see what the demand is and where valuations will go.

If you get the three big ones, you probably end up with something like a 5% weight in the S&P 500, which is significant but not going to 20. A lot of our strategies work on earnings estimates and momentum, and you won't have a lot of data for those companies to begin with. It will force people to use a bit more judgment.

Put selling is a chronic thing where the market overprices hedging risk. If you are willing to take the other side, you can make a quite good return. FX can be quite uncorrelated, and trend has performed really well this year. It is about finding things that are actually diversified rather than optically diversified.

There is a lot about structuring how you do the options and what volume over what timeline. You also have to accept that there is a window where you outperform and then be aware of the market conditions where you will underperform, like a sharp crash or sharp rise.

Europe's share of tech has improved with companies like ASML, SAP, and Infineon. But a lot of it is still high exposure to energy and consumer, and it has suffered from being on the weaker end of the quality growth trade. Europe is also a more highly regulated environment, which imposes more cost on business.

I think there are some great companies there, but as a whole, they probably need to do a bit of work on capital markets and regulation.

Emerging markets has almost become an AI trade to some degree. The problem is you bundle together all these different markets that do very different things. As markets get bigger, we are able to cut them up into pieces to invest in specific themes. Asia certainly has production capacity that doesn't exist anywhere else, and it will be critical.

There certainly is demand for that growth in memory.