Asset Allocation

Low Risk Portfolio

Capturing some capital growth with low risk exposure.

For the risk-averse with stable returns. For a conservative portfolio in 2016, we prefer developed market government bonds amid expected further downside pressure on total returns for corporate bonds. In terms of equities, we see more value in stocks in the US and Asia Pacific ex-Japan over Europe and Japan.

Low Risk Portfolio

 Tactical Asset Allocation
Equities15.00%
US5.00%
Europe3.00%
Japan3.00%
Asia Pacific ex Japan4.00%
Emerging Markets ex Asia
0.00%
Fixed Income35.00%
Developed Markets (DM)35.00%
DM Government Bonds
35.00%
DM Corporate Bonds
0.00%
Emerging Markets (EM)0.00%
Alternatives0.00%
Commodity0.00%
Gold0.00%
Hedge Funds0.00%
Cash50.00%

 

Tactical Asset Allocation

Asset Class3-Month Basis12-Month Basis
EquitiesUnderweightUnderweight
US EquitiesUnderweightUnderweight
Europe EquitiesUnderweightUnderweight
Japan EquitiesUnderweightUnderweight
Asia Pacific ex-Japan (APxJ) EquitiesOverweightNeutral
Emerging Market (EM) EquitiesOverweightNeutral
BondsNeutralNeutral
Developed Markets (DM) Bonds
NeutralNeutral
  DM Government Bonds
NeutralNeutral
DM Corporate BondsNeutralNeutral
Emerging Markets (EM) BondsNeutralNeutral
AlternativesOverweightOverweight
CommoditiesNeutralNeutral
GoldOverweightOverweight
Hedge FundsOverweightOverweight
CashNeutralNeutral

Source: DBS CIO Office, Morningstar Investment Management Asia Limited, as of 29 September 2016

Notes:

  1. Asset allocation does not ensure a profit or protect against market loss.
  2. Percentages denote actual tactical asset allocation weights for a 3-month time horizon.

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  1. The information herein is published by DBS Bank Ltd (“DBS Bank”) for information only. This publication is intended for DBS Bank and its clients or prospective clients and may not be reproduced, transmitted or communicated to any other person without the prior written permission from DBS Bank.
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