This is a first-of-its-kind index developed by a wealth manager in Asia and will be composed of a model portfolio of stocks selected by DBS’ Chief Investment Office.
“The divergence of recent years between the performances of developed markets and Asia ex-Japan has created opportunities to invest in Asia’s ongoing rapid economic growth at more reasonable valuations. As the MSCI Asia Pacific ex-Japan Index traded sideways over the past three years, the talk had been of Asia’s slowing economic growth rate. What is often forgotten is that Asia ex-Japan continues to grow, and rapidly too, by international standards,” said Lim Say Boon, Chief Investment Officer of Group Wealth Management & Private Banking, DBS Bank.
Since June, DBS’ Chief Investment Office has become more positive towards Asia ex-Japan equities’ performance outlook. The technical signals suggested back in June that a “breakout” was more likely than a break down in prices and indeed this is what has happened. This is particularly evident in Chinese equities.
Its optimism had been – and continues to be – based on three factors:
“Over coming months, we see the search for value (in what is a more expensive global equities market) rotating – between sectors within countries; between countries; and between regions. Funds are likely to rotate back to Asia ex-Japan,” Lim added.
“Considering the growing investor demand in Asia ex-Japan, it is timely for us to launch a performance index which will provide our clients with opportunities to share in the growth story. We will continue to look at expanding our offerings, and develop customised products linked to similar investment themes for our clients,” said Audra Seah, Head of Investment Advisory Singapore, DBS Private Bank.
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About DBS DBS - Living, Breathing Asia DBS is a leading financial services group in Asia, with over 250 branches across 17 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for five consecutive years from 2009 to 2013.
DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way.
It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
