Quantitative Global Macro Strategy: Where are all the allocators‘ blocks? Selectively concentrated

Research evidence excerpt

Quantitative Global Macro Strategy: Where are all the allocators‘ blocks? Selectively concentrated

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27 Jul 2026 15:17:47 ET │ 12 pages

Quantitative Global Macro Strategy

Where are all the allocators’ blocks? Selectively concentrated

CITI'S TAKE

Alex Saunders AC

Asset allocators remain pro-risk but increasingly selective and +1-212-723-1058

concentrated. Under the hood, investors retain conviction in AI-led growth alexander.saunders@citi.com

while diversifying away from expensive, concentrated US exposure.

Managers added to EM equities, particularly China, EMEA and LATAM, while Vinh Vo AC

maintaining underweights in Europe and the UK. Softer labour and inflation +44-20-75-086-717

data have supported a more dovish rates outlook, but hawkish Fed rhetoric vinh.vo@citi.com

and renewed US-Iran tensions complicate the picture ahead of the FOMC

meeting this week. Accordingly, rates positioning remains mixed, with Gilts Dirk Willer AC

and core European bonds preferred to US Treasuries and JGBs. Credit +1-212-723-1016

allocations are cautious, with EM corporate credit favoured over US IG and dirk.willer@citi.com

HY. Commodity conviction strengthened in energy and base metals,

supported by geopolitical and AI-infrastructure themes, while precious Adam Pickett AC

metals lost favour. In FX, EMFX remains the dominant consensus long +44-20-7500-5777

alongside EUR, while GBP and CHF are the preferred shorts. adam.pickett@citi.com

Giammarco Miani AC

Risk appetite strengthened, led by EM equities and commodities — Managers

+44-20-7986-6316added broadly to EM equity exposure, while energy and base metals longs gained

conviction. Elsewhere, positioning remained selective, with EMFX the dominant FX giammarco.miani@citi.com

AClong and mixed views across rates and credit.