Investment Leaders July 2025

This note explores how to build portfolio defensiveness, a topic of particular saliency when set against the present backdrop of shifting geopolitical and economic relationships, and elevated asset prices.

During May the Trump administration continued to announce new tariffs as well as delay the implementation of previously announced tariffs. Here the Northcape Capital Global Emerging Markets team shares an update on Trump’s trade policies and the investment implications for emerging market (EM) equities.

As markets shift, advisers are rethinking traditional credit strategies to deliver consistent income and manage risk. Advisers can complement corporate credit with Asset Backed Finance to diversify portfolios, reduce correlation to traditional credit markets and access real-economy-linked income streams.

The U.S. is nearing a fiscal breaking point. With national debt exceeding US$36 trillion and interest rates at multi-decade highs, borrowing costs are surging, market volatility is rising, and old investment playbooks no longer apply. This whitepaper explores the risks of the U.S. debt spiral and outlines defensive strategies to help investors navigate an era where cheap debt is firmly in the past.