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New GRID for Asia after COVID-19 

DeGlobalisation - Amid geopolitical swings and weaker economic growth, the post-COVID world is expected to move towards deglobalisation, with looser trading ties and countries becoming more self-reliant.

Resumption of growth - Asia is expected to outpace developed territories with positive GDP growth for 2020, and further improvements in 2021.

Low Interest rate - We believe that the US Federal Reserve will keep interest rates lower for longer and the US dollar will remain under pressure. Given the inverse relationship between the US dollar and Asian equities, capital seeking a higher potential yield or total return may flow into Asian equities.

  • Review and rebalance: navigating waves of volatility

    Market volatility is unavoidable. So, how should investors stay calm and ride through market ups and downs? It’s important to review and rebalance portfolios, so your investment can remain on track. 

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  • Diversification

    There is no free lunch. But Diversification comes close in investing. A diversified portfolio was shown to have the ability to optimize returns with lower volatility in the long run. Divergence in the performance of portfolios can be attributed to asset allocation.

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  • What is ESG investing?

    Sustainability and environmental, social and governance (ESG) factors are increasingly front of mind for many Asian investors. We explain what ESG investing is, its benefits and drawbacks and what it means for investors.

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1 World Trade Organisation (WTO), United Nations conference on trade and development (UNCTAD), September 2020. World merchandise trade volume index was rebased to 100 in 2005.

2 Organisation for Economic Co-operation and Development (OECD), 14 September 2020. Bloomberg, 14 October 2020. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be signifcantly different than that shown here. The information in this material including statements concerning fnancial market trends, are based on current market conditions, which will fuctuate and may be superseded by subsequent market events or for other reasons. For illustration purposes only.

3 Bloomberg, as of 30 September 2020. Correlation is calculated based on monthly performance from 30 September 2015 to 30 September 2020. Asian equities are represented by MSCI AC Asia ex Japan gross total return USD index. Past performance is not indicative of future performance. Investors cannot invest directly in an index.

4 eMarketer, May 2020.

5 Gartner, July 2020.

6 Citi research, 4 October 2020.

 

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    Recognise the different terms related to interest rates and understand how much yield global government bonds can offer.

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  • Four essential keywords related to interest rates

    Central banks in some emerging and Asian markets have started to hike rates, but deposit rates may not necessarily move in tandem. This would gradually erode depositors’ purchasing power in an inflationary environment. To achieve potential returns that beat inflation, deposit-focused investors should base any investment decisions on their risk tolerance levels and wealth management objectives.

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    Many Asian governments are considering incentives to encourage larger families. These evolving policies will be vitally important, as the region looks to sustain a fast-greying population.

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