Look for income-paying assets amid uncertainties: CIMB Bank

Straits Times

3 days ago

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CIMB expects fixed income will outperform, at least in the second half of the year, while it is staying neutral on equities.
SINGAPORE – Investors can navigate volatile markets by focusing on investments that generate income, such as fixed income securities and shares, noted CIMB Bank on June 18.
Mr Jason Kuan, Singapore director of investment research and advisory at its Chief Investment Office, told a briefing that the US tariff announcements in April prompted customers to ask the bank if they should adjust their portfolios or even sell up.
'We've always advocated that you should build a globally diversified portfolio,' noted Mr Kuan.
'But probably more importantly, it is to stay invested. And the best way is to weather the volatility because these things come time and time again.'
He also backed investments that pay dividends: 'This income can really help to cushion volatility in the portfolio. When things start to finally settle, you can shift your assets over to more growth-oriented and more exciting stuff.'
Mr Kuan said CIMB expects that fixed income will outperform, at least in the second half of the year, while it is staying neutral on equities.
He also referred to Singapore as 'a harbour in choppy waters', one that offers neutrality and a relatively stable currency, so investors could consider Singapore dollar assets as part of their diversified portfolios.
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'This can be in the form of shares listed on the Singapore Exchange, Singdollar-denominated bonds or hedged share classes for mutual funds.'
Mr Kuan added that the Singdollar has been appreciating against the weakening US dollar and expects this to continue. The Singdollar is up more than 6 per cent against the greenback in 2025.
He is also hopeful of an upswing in the fortunes of the Singapore stock market, in the light of the Monetary Authority of Singapore announcing measures in February to revive the bourse.
Mr Jason Kuan, CIMB Singapore's director of investment research and advisory at its Chief Investment Office, told a briefing that the US tariff announcements in April prompted customers to ask the bank if they should adjust their portfolios.
PHOTO: CIMB
Mr Kuan noted that the stock market is largely capitalised by the three local banks – DBS, OCBC and UOB – and other blue-chip stocks.
'They are trying to find ways to re-energise the Singapore equity market and really to get more companies to list here. So we look forward to that.'
National projects could also boost the economy amid a weaker global economic outlook and the impact of US tariffs, he said.
The Singapore Government in April
lowered its forecast for 2025 growth to 0 per cent to 2 per cent, from a range of 1 per cent to 3 per cent previously.
The construction of Changi Airport's Terminal 5 and the expansion of Marina Bay Sands continue to provide support for the Singapore economy and jobs market, he added.