A guide to diversify your portfolio

A guide to diversify your portfolio

2015 Q1 Asset Allocator

Key Highlights:

  • Citibank® Asia Model Portfolio Committee maintains its pro-risk stance with an overweight position on global equities and underweight on fixed income.
  • Given geopolitical tensions and heightened volatility in Europe, the committee's allocation changes include:
    • Scaling back Euro exposure while remaining overweight on European equities and credits
    • Upgrading allocations to both Asian equities and credit

Global growth and an accommodative policy stance may be a helpful combination for global equities while geopolitics may provide buying opportunities.


2014 Q4 Asset Allocator

Key Highlights:

  • Citibank® Asia Model Portfolio Committee maintains its moderate overweight positions in global equities and underweight positions in fixed income for the next 12-18 months.
  • The committee’s macro outlook changes over the past quarter include:
    • Lower global GDP growth forecast (3.2% in 2015);
    • Lower long term yields - US 10-year forecast 2.35% (end 2014) and 3.05% (end 2015);
    • Strong US dollar trend - EUR/USD 6-12 month forecast: 1.15; USD/JPY 6-12 month forecast: 115.
  • Catalysts for Asian equities’ year-end rally:
    • Further easing in Japan and Europe;
    • Lower oil price;
    • The People's Bank of China's policy support and launch of Shanghai-Hong Kong Stock Connect.


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