Second Quarter 2021
Strong upcycle to underpin assets performance
Investment Strategy
The first quarter reaffirmed our views that 2021 will be a year of a strong global recovery with fiscal and monetary policies continuing to be very supportive of growth assets. Nevertheless, market concerns have shifted from optimism of robust recovery to one where overheating pose limits to growth. While growth assets have already priced in a strong recovery and volatility of markets remains high, we are of the view that growth assets tend to perform best in the wake of a strong recovery especially with strong policy support. We remain overweight in risk assets like equities and high yield credits and we are more cautious on safe assets like government bonds. We think the outlook for Asia remains positive and are overweight on Asian equities, fixed income and currencies.
Global Asset Allocation
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