Maximising capital growth potential through exposure to a large portion in risky assets.
This model appeals to investors seeking to maximize growth and are tolerant of losses and market fluctuations over the medium to long term. Volatility is likely to rise this year, and large sideways swings highly probable. Technical (chart-based) signals suggest bullish forces should be stronger in the early part of 2016 than in the latter part of the year. The US stock market is at risk of underperforming. And indeed, unloved EM and AXJ equities could prove most resilient later in 2016.
|Tactical Asset Allocation|
|Asia Pacific ex Japan||18.00%|
|Emerging Markets ex Asia||9.00%|
|Developed Markets (DM)||1.00%|
|DM Government Bonds||0.00%|
|DM Corporate Bonds||1.00%|
|Emerging Markets (EM)||1.50%|
|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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