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
Asia Pacific ex Japan2.00%
Emerging Markets ex Asia
Fixed Income32.00%
Developed Markets (DM)32.00%
DM Government Bond
DM Corporate Bonds
Emerging Markets (EM)0.00%
Hedge Funds0.00%


Tactical Asset Allocation

Asset Class3-Month Basis12-Month Basis
US EquitiesOverweightNeutral
Europe EquitiesNeutralNeutral
Japan EquitiesOverweightOverweight
Asia Pacific ex-Japan (APxJ) EquitiesUnderweightNeutral
Emerging Market (EM) EquitiesUnderweightNeutral
Developed Markets (DM) Bonds
  DM Government Bonds
DM Corporate BondsNeutralNeutral
Emerging Markets (EM) BondsUnderweightNeutral
Hedge FundsUnderweightNeutral

Source: DBS CIO Office, Morningstar Investment Management Asia Limited, as of 13 January 2017


  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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