Investment Insights

 
We downgraded our defensive position marginally, while we maintained an overweight to growth assets.

Global Investment Committee’s outlook: regime shift to a more volatile world

With the US “exceptionalism” narrative fading, we see value in global diversification. We observe potential turning points in Europe and China equities that may serve as opportunities to diversify global portfolios. Volatile market conditions may be the new normal, but opportunities may emerge due to greater differentiation among firms and economies.
We continue to believe that Asia’s local government bonds are positioned to perform well, supported by accommodative central banks amid an environment of benign inflation and moderating growth.
While US equities stumbled in February, Asian ex Japan equities gained modestly, helped by continued positive momentum in Chinese tech stocks. China's tech has been the comeback story so far in 2025 after DeepSeek injected some liveliness into the market.

Vietnam ascending

Vietnam is demonstrating a commitment to improving governance, expanding infrastructure and cultivating a more competitive business environment. These efforts position Vietnam to harness its demographic advantages and capitalise on emerging geopolitical opportunities.

End of “lazy” earnings era may bring fresh opportunities for stock pickers

For 30 years, policy factors like falling corporate tax and interest rates were seen to have generated a bulk of corporate profits, reducing stock-selection opportunities. There are indications that this policy-driven earnings era is coming to an end, heralding darker days for the average firm. However, firms skilled at raising profitability in core business areas could benefit, thus creating new opportunities for skilled stock pickers.

New Zealand Fixed Income Monthly (February 2025)

We believe that the Official Cash Rate’s projected path to the 3% level, which we consider likely to be the lowest point of the Reserve Bank of New Zealand’s current easing cycle, may be more noteworthy than the interest rate cut in February.

New Zealand Equity Monthly (February 2025)

February was a challenging month for New Zealand’s stock market following a weak corporate earnings season. Looking ahead, however, we remain confident about the market in 2025 and after. A key reason for this is the interest rate cutting cycle by the Reserve Bank of New Zealand that is currently underway.

Navigating Japan Equities: Monthly Insights From Tokyo (March 2025)

We assess the factors behind the recent surge in Japan's long-term yields and its implications for equities; we also analyse the robustness of corporate earnings amid the structural economic changes taking place.

A year later: five reasons we're still bullish on Japan

In March 2024, after the Nikkei Index reached an all-time high, we offered five structural reasons why Japan's economic resurgence was more than just a flash in the pan. Almost a year later, those five reasons remain just as relevant for investors considering an allocation to Japan.