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October 2016

Wealth Insights

Five Years Later, Hope For Asia



Teo Joo Wah Chief Strategist Lion Global Investors Member of the OCBC Wealth Panel


	“Asia presents a worthwhile consideration for long-term investors, as better earnings next year will eventually be reflected in valuations. ”

Highlights This Month

Global Outlook

Shift in Policy Thinking

Fiscal policy should take the lead; monetary policy is exhausted

Equities

Brace for Volatility

Extended valuations provide limited downside margin; growth likely to remain weak.

Bonds

Fed’s Delay a Boon for Credit Markets

We maintain our preference for higher quality names despite less compelling valuations.

FX/Commodities

From Policy to Politics

The U.S. election will be the main theme as central banks take a break.

Top Investment Ideas

Hunt for Yield Still Reigns

Michael Tan
Senior Investment Counsellor
OCBC Bank
Member of the OCBC Wealth Panel

Equity Funds	• Schroder Asia Equity Yield Fund
Equity-Linked Convertible Investments	• Keppel DC REIT • SPH REIT • Frasers Centrepoint Trust • City Developments • Bank of New York Mellon
Bonds	• GuocoLand Limited 3.95%, 1 April 2019
Bond/Multi-Asset Funds	• LionGlobal Short Duration Bond Fund • BlackRock Global Multi-Asset Income Fund • Schroder Asia Income Fund • JPM Global Macro Opportunities Fund
Currencies	Fed inaction leaves U.S. Dollar vulnerable for now. But we do not expect the U.S. Dollar setback to last given Fed’s readiness to hike in December.

Important Information

1.	Any opinions or views of third parties expressed in this document are expressed by the third parties identified, and do not represent our view.
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1.	A copy of the prospectus of each fund is available and may be obtained from the fund manager or any of its approved distributors. Potential investors should read the prospectus for details on the relevant fund before deciding whether to subscribe for, or purchase units in the fund.
2.	The value of the units in the funds and the income accruing to the units, if any, may fall or rise. Please refer to the prospectus of the relevant fund for the name of the fund manager and the investment objectives of the fund.
3.	Investment involves risks. Past performance figures do not reflect future performance.
4.	Any reference to a company, financial product or asset class is used for illustrative purposes and does not represent our recommendation in any way.

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