Omnis Managed Portfolio Service
March 2026 | Monthly update
Market-moving events
Rotation broadens. The Dow Jones Index passed the 50,000 milestone in early February, reaching a new intraday high, while the S&P 500 moved largely sideways. At the same time, Microsoft fell sharply from late January levels, highlighting a clear rotation away from technology and into broader US sectors. We expect this shift away from tech to continue as investors reassess whether AI capital spending can translate into sustainable earnings growth.
Diversification gathers pace. Diversification beyond the US accelerated, with strong overseas performance. Korea’s market rose 27% to a record high on expectations it will benefit from AI investment. The FTSE 100 and France’s CAC 40 index also reached new highs, while Japan extended its strong run, supported by international inflows into government bonds.
China under pressure. China continues to face economic headwinds. While growth remains around 5%, data points to slowing momentum. Manufacturing PMI slipped into contraction at 49.3, and half of China’s regions lowered their 2026 growth targets. Although less severe than previous downturns, this signals a cautious outlook. A more realistic approach from Beijing could allow fiscal resources to be deployed more effectively and support stabilisation.
Investment highlights
Tactical positioning rewarded. Our tactical positioning benefited from a rotation out of US technology, which created a drag on the Omnis US Equity Leaders Fund. The Omnis US Smaller Companies Fund subsequently outperformed, driving positive TAA performance.
No changes made during the month. Following January’s trades out of US large caps and into US small caps, and a portfolio rebalance, we left the portfolio unchanged in February.
Remain cautiously positioned. We retain a moderate overweight position in bonds and an underweight allocation to equities, particularly US large companies. We continue to expect a broadening of the equity market rally away from US large caps, as we believe the AI narrative is likely to come under greater scrutiny.
Asset allocation
Take a look at our latest asset allocation in the Omnis Managed Portfolio Service.
Issued by Omnis Investments, which is authorised and regulated by the Financial Conduct Authority. Registered address: Auckland House, Lydiard Fields, Swindon SN5 8UB. This update reflects our view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis Investments is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance.
Approved by Omnis Investments on 1 March 2026.
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