2015 Q1 Asset Allocator
- 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
- 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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