Asset Allocation

Medium Risk Portfolio

Achieving potential growth with some fluctuations.

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.

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 Tactical Asset Allocation
Equities45.00%
US9.00%
Europe6.00%
Japan6.00%
Asia Pacific ex Japan18.00%
Emerging Markets ex Asia6.00%
Fixed Income36.00%
Developed Markets (DM)
30.00%
DM Government Bonds15.00%
DM Corporate Bonds15.00%
Emerging Markets (EM)
6.00%
Alternatives7.00%
Commodity1.00%
Gold2.00%
Hedge Funds4.00%
Cash12.00%

 

Tactical Asset Allocation

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

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

Remarks:

  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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Call Us: (852) 3668 8008

Get In Touch

Call Us: (852) 3668 8008