portfolio weighting of the US by 40 percent, the UK by one percent and Japan by two.

The committee now recommends a world equities portfolio allocation of 52 percent in the US and Canada, 26 percent in Europe, 10 percent in the UK, seven percent in Japan, three percent in Asia and two percent in the emerging markets.

The committee's allocation strategy was made by the committee on February 25 and made public in the bank's March issue of the global investment update.

In the past The Royal Gazette has received the monthly outlook from the bank in the month after the cover date and so declined to publish the recommendations. The current report was received this week.

The committee also raised its US bond allocation weighting by five percent and decreased the UK by five percent. By region the committee recommends 40 percent of a bond portfolio in the US and Canadian market, 37 percent in Europe, 15 percent in the UK, two percent in emerging markets, and six percent in corporate high yield.

The committee recommends a portfolio 40 percent in bonds and 60 percent in equities.

In its sector analysis the committee stated US "technical momentum'' remains strong. However the high valuations in the market may limit short term gains.

Meanwhile the investment outlook in Japan remains "gloomy'' despite attempts to address the economy's structural problems. The committee is neutral on the UK, and Europe. The Asia region shows some signs of recovery.