Asset Allocation

High Risk Portfolio

Maximizing returns by investing in more volatile financial instruments.

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.

Please refer to the Useful Links below for Disclaimer.

 Tactical Asset Allocation
Equities84.50%
US14.00%
Europe14.00%
Japan7.00%
Asia Pacific ex Japan33.50%
Emerging Markets ex Asia16.00%
Fixed Income3.00%
Developed Markets (DM)
1.00%
DM Government Bonds0.00%
DM Corporate Bonds1.00%
Emerging Markets (EM)
2.00%
Alternatives12.50%
Commodity1.00%
Gold5.50%
Hedge Funds6.00%
Cash0.00%

 

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 BondsNeutralNeutral
DM Corporate BondsNeutralNeutral
Emerging Markets (EM) Bonds
NeutralNeutral
AlternativesOverweightOverweight
CommoditiesNeutralNeutral
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.