When the conflict in the Gulf started, and the Strait Hormuz closed to shipping, the world was staring down the barrel of the largest energy shock in history. A tale of two quarters In the first quarter, the value of having incorporated portfolio resilience proved valuable. Similar to the Russia/Ukraine war and energy shock of 2022, the combination of recession risk and energy-driven inflation drove both equities and bonds down. Bonds failed as a diversifier. In 1Q26 World Equities were down -3.86%, Gilts were down -1.80%, diversified Alternatives were up +3.34% all in GBP terms (see notes).  2q26 (feared) - a re-run of 4q73? The last time the Gulf was shut to shipping and there was a similar energy shock was the OPEC oil embargo relating to the 1973 Yom Kippur war in October 1973. To get an idea of directionality for key asset classes, in 4Q73 Equities were down, bond were flat, Alternatives were up*.  2q26 (actual) – phew: insurance not needed In the end, the combination of a ceasefire, political negotiations and the astonishing resilience of both the AI-driven step-change in equity markets and broader earnings resilience across equities, meant that for our three key asset class buckets, in 2Q26 World Equities were +14.75%, Gilts were +0.61% and Alternatives -2.09%. Whilst investors are sensitive to negative returns, Alternatives are doing their job – providing differentiation and diversification.  What was the cost of insurance The relative performance between Equities and Alternatives was +16.84%, and between Bonds and Alternatives was +2.70%, The allocation to Alternatives applied to this relative performance is the cost of insuring against that negative 4Q74 style scenario. As with any insurance policy, the premium is worth it, and one should be glad if you don’t need to use it. The fog of war A calm has returned to markets, with AI and tech once again dominating the headlines. Hindsight investing is easy. The world was a different place in March 2026, and the priority for asset allocators was to ensure that portfolios had defensive diversifiers in place, in case the Strait remained closed for longer and the then-real risk of a recession. We recommend our investment manager and financial adviser clients to remain diversified within and across asset classes. And it is real-life scenarios like this that explains why. Notes
For 1q26 and 2q26, Equities are represented by a world equity index fund, Bonds by a a gilts index funds, and Alternatives by a Diversified Asset Fund. Return figures in the charts are in GBP. Ffor 4q73 figures, equities are represented by S&P 500 Index bonds by US 10 Year Treasury Index and Alternatives by the Bloomberg Commodity Index. Return figures in the chart are in USD. 
Reflections on a keynote address by Sir Richard Moore, Former Chief (‘C’) of the UK Secret Intelligence Service (2020–2025) (MI6) in conversation with Emma Walden at FundsForum Monaco 2026.
The closing session of IMpower FundForum 2026 in Monaco asked how leading multi-asset CIOs manage uncertainty when politics trumps economics, and whether the traditional 60/40 portfolio still deserves its place. Four allocators took the stage: Rémi Lambert of BNP Paribas Asset Management, Piers Hillier of Jupiter Asset Management, Demir Bektic of Commerzbank Wealth and Asset Management, and Henry Cobbe, founder and head of research at Elston Consulting. Luke Hyde-Smith, Head of Multi-Asset at W1M moderated the discussion. The discussion was held under the Chatham House Rule.
At this year's FundForum in Monaco, Elston Consulting's Portfolio Strategist, Andrea Acimovic, joined panellists from TrinityBridge, Evelyn Partners and Morningstar to discuss one of the defining trends in asset management: the extraordinary growth of ETFs and the structural challenges emerging alongside it.
Elston Consulting marks a major milestone with total related assets exceeding £3bn (as of end May 2026) for the first time. This growth highlights a significant structural shift in the UK advisory market, as 71% of Elston’s £2.2bn MPS-related assets are now held with co-manufactured custom or tailored portfolios rather than standard off-the-shelf portfolios.
At the end of May 2026, there were over £3.0bn of assets invested across strategies designed by Elston Consulting, made up of £2.2bn in MPS managed by Elston Portfolio Management, and £800m in funds using Elston’s research and/or indices. 
The UK Government is continuing its push to encourage greater participation in long-term investing, with ISA reform forming part of a broader agenda that includes the Mansion House Accords and initiatives designed to improve engagement with investing like the £50m "Savvy Squirrel" advertising campaign. The stated policy objective is clear: to encourage retail investment and support better long-term returns for savers by directing more capital towards productive assets rather than cash savings.
With the Strait of Hormuz reopening and the war premium unwinding, markets have swung back to risk-on. Henry Cobbe and Hoshang Daroga discuss what the AI capex cycle, a fragile gilt market and a repriced gold trade mean for portfolios into the second half of 2026.
 Andrea Acimovic, portfolio strategist at Elston, was a panellist at FundForum 2026 - the world’s largest investment fund conference. In her panel discussion she explored the key drivers and obstacles to ETF adoption in the UK retail market.
Read more here.
Kwasi Kwarteng (former UK Chancellor) discusses UK growth (and yes that Budget) and what is needed to get back on track.
Admiral Tony Radakin (former UK Chief of Defence Staff) speaks on the changing global security landscape and the need for preparedness.
Quarterly investment outlook update from the Elston team with guest speaker Natasha Sarkaria from BlackRock.
With warmest wishes to all those in the British Armed Forces Reserves 
Congratulations to the winning crews Thames Rowing Club, Oxford Brooks University Boat Club and St Paul's School Boat Club, in Club, Student, and Junior categories respectively! Elston Consulting, founded in 2012 by former rower Henry Cobbe, supports British Rowing by supporting London Youth Rowing, National Schools Regatta, and this year for the first time by sponsoring the Marlow Regatta Grand Challenge Cup which is divided into three categories - Club, University/Student and School/Junior.     
The world is changing: revolutions in technology, defence and energy are creating a need for physical, economic and portfolio resilience.
From an investment perspective we explore ways to ensure portfolio resilience to adapt to these paradigm shifts with a focus on:
Watch the playback here on our BrightTalk Channel For UK IFAs/DFMs/Professional Investors only.
General Lord Dannatt (former UK Chief of the General Staff, 2006–09), speaking at the Elston Lombard Lunch on the changing global security landscape and the need for preparedness.
Watch the playback hereon our BrightTalk Channel For UK IFAs/DFMs/Professional Investors only.
Elston Consulting has officially crossed a major milestone, with total related assets reaching £3.0bn as of late spring 2026. This growth highlights a significant structural shift in the UK advisory market, as 71% of Elston’s £2.2bn MPS assets are now held within co-manufactured custom portfolios rather than standard off-the-shelf options. Read the full breakdown of our portfolio and fund metrics, alongside a statement from our founder on our continued transition toward an implemented consulting model.
Henry Cobbe CFA, Head of Research at Elston Consulting discusses why and how retail investors are being attracted to the SpaceX IPO and what the key considerations are
Henry Cobbe CFA, Head of Research at Elston Consulting outlines whether and how index providers, fund managers and portfolio managers are preparing for the the SpaceX IPO
Just as major supermarkets achieve better consumer value by manufacturing their own white-label goods, discretionary managers can utilize proprietary fund structures to lower institutional costs and improve execution agility. However, smaller arrangements lacking scale risk running afoul of regulatory standards on product governance and distributor-influenced rules.
Since 2024, Elston has been supporting cricket in Scotland. As lead sponsor of the Elston Clydesdale 1st XI Cricket Team, we are proud to be sponsoring this Glasgow-based club. The team had an unbeaten run in 2025 crowned by winning the Scottish Cup. We wish the team the best of luck for this 2026 season.  |
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