Looking at this week’s updates from two award-winning asset managers, the focus is on the Federal Reserve: it raised interest rates on Wednesday, the first hike since 2023. UBP, winner of the Asset Allocation Award and the Overall Award earlier this year, maintains a neutral stance on equities and fixed-income securities. Federated Hermes, winner of the Fixed Income Award, aligns with the consensus, recommending an overweight position in equities and an underweight position in fixed income.
House View: UBP
UBP, a two-time winner of the Asset Allocation Awards, maintains its neutral rating for equities and fixed-income securities; we note that the report was published prior to the interest rate hike. Due to persistent inflation, with oil prices being a key factor, the yield on 10-year government bonds was hovering around 4.75% at the time. UBP warned that “a return to tighter financial conditions would mark a genuine regime shift.” The next report in October will reveal whether last Wednesday’s events were significant in terms of changes to asset allocation recommendations.
UBP House View, September 2026↗
House View: Federated Hermes
Federated Hermes, winner of the Fixed Income Award and a finalist for the Asset Allocation Award in 2026, aligns its meeting cycle with that of the Federal Reserve, and its PRISM model remained unchanged following Wednesday’s interest rate hike. It currently has an overweight position in stocks and an underweight position in bonds. Steven Chiavarone, the Chief Investment Officer, raised the 2026 earnings forecast for the S&P 500 from $340 to $370 on September 9, and would “likely view a short-term correction as a buying opportunity.”
Still up and to the right, September 2026↗
What This Means for the Consensus
Federated Hermes aligns with the consensus: overweight in stocks and underweight in bonds. UBP is neutral on both stocks and bonds. With the Fed’s interest rate hike, we’ll see next month whether these successful asset managers make any adjustments. Looking now at the consensus for stocks, 74.1% of the recommendations are overweight. Given that UBP and Federated Hermes have not made any adjustments, a positive outlook on the stock market seems justified.