Izah Azahari
Global markets this year have been nothing short of challenging and fraught with uncertainties, said Standard Chartered Securities CEO Brenda Low.
“The risk of a global economic recession has risen over the past month after upside inflation surprises and still-robust job market hardened expectations of tighter monetary policies,” she said.
She made these comments at a Market Outlook seminar hosted by Standard Chartered Securities, a subsidiary of Standard Chartered Bank Brunei in collaboration with Fullerton Fund Management for clients at Serambi Suluh, Tarindak d’Seni, Bandar Seri Begawan attended by over 100 guests.
Brenda said policymakers at the Federal Reserve (Fed), European Central Bank (ECB) and Bank of England (BoE) continue with their policy tightening until they see clear and sustained signs of inflation heading back towards their two per cent target; China remains committed to zero-COVID policies, which is likely to constrain the recovery; and in the West, political tensions between Russia and Ukraine continue to trigger an energy crisis while a change in leadership is seen in the United Kingdom (UK).
“All these will, no doubt, pose concerns in most investors’ minds and reduce confidence towards investing, with a majority adopting a ‘wait and see’ mindset towards going into the market,” she added.
Despite all this, the CEO of Standard Chartered Securities said they continue to see opportunities in capturing yield through a strategy that focusses on three points – rebalancing into investment grade corporate bonds and some undervalued equity markets; rotating into high quality income assets; and risk managing via hedges, cash and cash-like assets.
“With all the volatility in the market, understandably client sentiments will be affected. This is where Standard Chartered Securities is committed to helping you stay invested by offering you advice on diversification of your portfolio and to seek opportunities where they may present themselves.”
Vice President of Business Development – Intermediaries, Fullerton Fund Management Sam Ye shared his insights on the current market outlook where he pointed out that 2022 is a bear market due to the impending economic recession. He elaborated on his insights through a panel discussion and shared their strategies and preparations to combat the current inflationary environment.
Fullerton Fund Management is a part of Standard Chartered Securities’ list of fund houses offering Fullerton SGD Heritage Growth, Fullerton SGD Heritage Balanced, Fullerton SGD Heritage Income and Fullerton Short Term Interest Rate Fund to Brunei Investors.