Capturing modest capital growth through a balanced risk-and-return approach.
For investors seeking to strike a balance between risk and return. For a balanced portfolio in 2016, we see more value in US and Asia Pacific ex-Japan equities over Europe and Japan. But regional and country performance differences are likely to shift, with developed markets showing more weakness in the latter part of the year than already battered AxJ and Emerging Market equities. We also see more value in developed market government bonds over corporate and emerging-market bonds.
|Tactical Asset Allocation|
|Asia Pacific ex Japan||11.00%|
|Emerging Markets ex Asia||6.00%|
|Developed Markets (DM)||22.00%|
|DM Government Bonds||11.00%|
|DM Corporate Bonds||11.00%|
Emerging Markets (EM)
|Asset Class||3-Month Basis||12-Month Basis|
|Asia Pacific ex-Japan (APxJ) Equities||Underweight||Neutral|
|Emerging Market (EM) Equities||Underweight||Neutral|
|Developed Markets (DM) Bonds||Underweight||Underweight|
| DM Government Bonds||Underweight||Underweight|
|DM Corporate Bonds||Neutral||Neutral|
|Emerging Markets (EM) Bonds||Underweight||Neutral|
|Source: DBS CIO Office, Morningstar Investment Management Asia Limited, as of 13 January 2017|
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