Arbuthnot Latham is maintaining a positive investment outlook, with continued opportunities in artificial intelligence, semiconductor demand and corporate credit supporting its latest portfolio positioning.
In its quarterly market update, the private bank reported that economic growth and corporate earnings had remained resilient, supported by substantial investment in AI infrastructure. Against this backdrop, the bank has adjusted its asset allocations to balance exposure to growth opportunities with attractive income-generating investments.
One of the main changes has been an increase in exposure to high-yield corporate bonds, funded through a reduction in its equity overweight position and a smaller allocation to hedge funds. Arbuthnot Latham believes corporate fundamentals remain relatively healthy, with companies continuing to generate strong cash flows and maintain their ability to service debt.
The bank has also taken advantage of weaker share prices to increase its exposure to semiconductor companies. Continued investment in AI infrastructure, growing demand for computing power and the development of AI agents are supporting its longer-term view of the sector.
Investment in AI infrastructure remains a significant driver of demand for semiconductors. Arbuthnot Latham noted that expected capital expenditure by major technology companies for 2026 had increased from approximately $546bn at the beginning of the year to around $806bn by the end of September.
This level of investment reflects the scale of resources being committed to AI development and the infrastructure required to support its expansion. The bank continues to see opportunities in companies positioned to benefit from growing demand for advanced computing capabilities.
Emerging markets also remain part of the investment strategy, with the bank retaining an overweight allocation despite a modest reduction during the quarter. Asian semiconductor companies, particularly in South Korea and Taiwan, continue to provide exposure to the technology investment cycle.
In energy markets, Arbuthnot Latham has maintained positions in oil and European natural gas. These investments provide exposure to energy prices and potential supply constraints, with the bank expecting some disruption to take time to unwind even as oil exports recover.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
