As COVID-19 ravages on the economy and our lives, the world has changed dramatically.
We have weathered and adapted well to these impacts over the last year, and have made some significant advancements in our lives – including how we communicate, conduct business, and, more importantly, how we look at investments.
At this event, our Bank of Singapore in-house specialists, together with Mr. John Tsang, the Former Financial Secretary of Hong Kong, and other industry experts from BlackRock Asset Management North Asia Limited, The Blackstone Group, Fidelity International, Franklin Templeton Investments (Asia) Limited, J.P.Morgan Asset Management, KKR Asia Limited, Lazard Asset Management, and Pictet Asset Management discussed the impact of COVID-19 on the economy and our lives, and shared their views on how to navigate this brave new world.
Key takeaways from panel #1: Has the traditional asset allocation model changed and how do investors navigate volatility?
- While the expectation of potential changes to the monetary policy in major central banks and associated concerns about inflation, high energy price and confusion regarding China’s “Common Prosperity” have posed volatility, they also present opportunities for investors as shared by the experts, i.e. key structural investment themes that could offer investment opportunities in this quarter & also next year. Hence, investors should stay invested.
Key takeaways from fireside chat with Mr. John Tsang
- On “Common Prosperity”:
There is no need to be too worried about China's "Common Prosperity" drive: the key purpose of this is to ensure the raising of living standard of people, which is inline with China's long term development strategy.
- On the Geater Bay Area:
Compared to other bay areas globally, China’s Greater Bay Area has better fundamental characteristics and should bode well for future development.
- On Hong Kong’s Status：
Hong Kong will still be able to maintain its financial hub status with better rules and regulations and alignment with international financial markets.
- On inflation:
John is cautious about inflation and rate hikes. Given that both are at historical lows, the only way is “up” and we need to be careful with rising rates and inflation.
Key takeaways from panel #2: Alternative Assets and their relevance in the new world
- With the increased volatility and uncertainty in the public markets, Alternative Investments has gained traction across the investment community. With alternative assets being the reserve of institutional investors in the past, they are highly relevant and accessible to high net worth investors, particularly in this new world.
- Private equity, private credit, real estate and infrastructure are highly relevant and complimentary to our clients’ traditional portfolio, while digital assets offer a differentiated return stream.
