2015 was a forgettable year for investors. Returns across most major asset classes were flat, with the exception of a few significantly negative ones. These paltry returns were not a surprise — we had expected 2015 to be a rebalancing year as global markets came to terms with the destabilising influences of a strongly rising USD and falling oil price. The good news is this adjustment process has been swift. Overall, we are more positive on 2016 than 2015 given the pockets of value that have already emerged and the opportunity to allocate to attractively priced assets as the adjustment process continues. However, we expect increasing geopolitical instability, particularly in EMs. (VIEW LINK)