After a bullish three quarters, we have turned slightly more cautious: https://www.uobam.com.sg/insights/qis4q24.page Anthony Raza, our Head of Multi-Asset Strategy, explains why he thinks markets are set for a positive 2025, but could be more volatile in the short term.
Asian cyclical stocks likely to be winners amid US rate cuts
US rate cuts, expected to start this week, pave the way for structurally stronger Asian currencies relative to the USD. This has the potential to reduce Asian countries’ USD debt and attract more foreign capital, thereby boosting local stocks. However, uncertainties ahead of the US elections and overly dovish rate cut expectations could result in market volatility over the short term. Read the full article here:
US Fed rate cuts set to benefit higher yielding Asian bonds
Our portfolio manager, Melvin Chan, shares insights on how the US rate cuts, due to start next week, could impact Asian bonds: https://www.uobam.com.sg/insights/ip-rate-cuts-asian-high-yield.page While falling rates generally bode well for bonds, we expect some Asian bond sectors to outperform others. In part two of our series, we explore why invertors selectively positioned in high yields and frontier market bonds can benefit from a strong income stream and good capital upside.
Maintain a steady income stream with the United SGD Fund
Want to maintain a steady income stream amidst falling interest rates? Step up your investments with the United SGD Fund: https://uobam.com.sg/unitedsgd *Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus. Visit https://uobam.com.sg/unitedsgd for full disclaimers. If you are interested in investment opportunities related to the theme covered in this article, here are some UOB Asset Management funds to consider: $UOB UNITED SGD "A" (SGDHDG) ACC(SG9999001382)$ | $
The United Asian Bond Fund seeks to find unvalued gems in Asia’s growing corporate bond market. This Fund actively selects investment grade bonds that have improving fundamentals and the potential for credit spread tightening. As a result, despite the Fund’s average credit rating of BBB, and duration below 5 years, the Fund is offering annual dividend income of 4.5% and has beat its benchmark this year. Read here to find out more. If you are interested in investment opportunities related to the theme covered in this article, here is a UOB Asset Management fund to consider: $UNITED ASIAN BOND (SGD) INC(SG9999001416)$ |
Asian bonds have been drawing strong inflows over the past three months, with bonds from Indonesia, India, Malaysia, South Korea and Thailand attracting particular interest. Read here to find out why foreign investors are diversifying away from US bonds and embracing Asian bonds. If you are interested in investment opportunities related to the theme covered in this article, here is a UOB Asset Management fund to consider: $UNITED ASIAN BOND (SGD) INC(SG9999001416)$ | $UNITED ASIAN BOND (USD) INC(SG9999010003)$