Asset allocation

The structural change in the Chinese’ role, the cyclical rebound in the Japanese economy and the lowering commodity prices are key factors sustaining ASEAN countries performance relative to other Emerging Markets.

When market movements dominate individual stock or bond prices, correlation between assets is usually high. We believe that, next year, better visibility about the economic environment in the US may globally reduce asset correlation, driving up dispersion. Traditionally, when macro risks remains elevated, marketmoves explain a large part of assets’ returns....