DBS Treasures Private Client analyses Q1 2024 investment opportunities to strengthen portfolios and stay on top of market trends
Indonesia.24 Jan 2024
Indonesia, 24 Jan 2024 - DBS Treasures Private Client held the "Smart Talk: Shifting Currents" sharing session in Jakarta (24/7). DBS Chief Investment Officer (CIO) Hou Wey Fook and Equities Specialist at DBS Group Research Maynard Arif shared their projections for economic development in the first quarter of 2024 with journalists. They also discussed opportunities for growth in the technology industry, secondary needs, and luxury goods to strengthen portfolios. On the same day, experts shared similar insights with clients at this prestigious event. The event was part of a curated multi-generational solution to meet clients' needs and help them stay ahead of the curve and optimise their wealth.
The US Federal Reserve (the Fed) has tightened its monetary policy and has hiked its rate by a cumulative 525 bps over the past 16 months, the fastest and most aggressive interest rate hike cycle in history. This has created challenging conditions for equities and bonds over the past year. Against a backdrop of market dynamics, a Barbell Strategy that focuses on income-generating bonds on one side and secular growth equities on the other can be a solution. DBS CIO's Barbell Strategy has recorded a 15% gain compared to the benchmark index* at 14% (as of December 29, 2023).
Furthermore, DBS Group Research expected the Q1 2024 environment to be more favourable to risky assets. According to the accompanying predictions, the US benchmark interest rate will peak as inflation slows and the Fed delays monetary tightening. Therefore, for equities, DBS CIO suggests that investors focus on quality growth in the technology and secondary needs sectors. For credit and bonds, the sweet spot lies in A/BBB-rated credit with 3-5 years to maturity. However, investors should remain cautious about credit risks that may accumulate even after interest rate hikes.
During the event, experts also discussed the growth of the luxury goods industry, which recorded a Compound Annual Growth Rate (CAGR) of 6% between 1996 and 2019. This growth was driven by globalisation and the purchasing power of Gen Z. DBS CIO believes that this industry has strong appeal and significant investment potential.
Head of Sales & Distribution Consumer Banking at PT Bank DBS Indonesia Pisa Valensia said, "As we embark on 2024, we understand that clients need proactive and aspirational advisory, especially to navigate the financial world with the next generation. To address these needs, DBS Treasures Private Client assists clients through Smart Talk events where they can speak directly with experts and network with other clients across generations. We also provide the latest insights on curated investment opportunities, both locally and globally, as well as protection for all stages of life. These insights are proactively delivered by Relationship Managers who have received training that meets international standards and are supported by the Portfolio 360˚ platform for quick and accurate portfolio analysis."
Moreover, DBS Treasures Private Client has expanded its client network to Singapore, one of the financial centres in Asia, offering competitive SGD currency exchange rates, a variety of SGD-related investment options, exclusive offerings in the DBS Singapore Marketplace (travel, education, health), zero-fee cash withdrawals at 699 DBS/POSB ATMs in Singapore, and emergency cash withdrawals of up to SGD15,000/day to maintain liquidity. All these features are provided to ensure clients always stay ahead of the curve and optimise their wealth, enabling them to "Live more, Bank less."
For more information about DBS Treasures Private Client, visit this page.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
The US Federal Reserve (the Fed) has tightened its monetary policy and has hiked its rate by a cumulative 525 bps over the past 16 months, the fastest and most aggressive interest rate hike cycle in history. This has created challenging conditions for equities and bonds over the past year. Against a backdrop of market dynamics, a Barbell Strategy that focuses on income-generating bonds on one side and secular growth equities on the other can be a solution. DBS CIO's Barbell Strategy has recorded a 15% gain compared to the benchmark index* at 14% (as of December 29, 2023).
Furthermore, DBS Group Research expected the Q1 2024 environment to be more favourable to risky assets. According to the accompanying predictions, the US benchmark interest rate will peak as inflation slows and the Fed delays monetary tightening. Therefore, for equities, DBS CIO suggests that investors focus on quality growth in the technology and secondary needs sectors. For credit and bonds, the sweet spot lies in A/BBB-rated credit with 3-5 years to maturity. However, investors should remain cautious about credit risks that may accumulate even after interest rate hikes.
During the event, experts also discussed the growth of the luxury goods industry, which recorded a Compound Annual Growth Rate (CAGR) of 6% between 1996 and 2019. This growth was driven by globalisation and the purchasing power of Gen Z. DBS CIO believes that this industry has strong appeal and significant investment potential.
Head of Sales & Distribution Consumer Banking at PT Bank DBS Indonesia Pisa Valensia said, "As we embark on 2024, we understand that clients need proactive and aspirational advisory, especially to navigate the financial world with the next generation. To address these needs, DBS Treasures Private Client assists clients through Smart Talk events where they can speak directly with experts and network with other clients across generations. We also provide the latest insights on curated investment opportunities, both locally and globally, as well as protection for all stages of life. These insights are proactively delivered by Relationship Managers who have received training that meets international standards and are supported by the Portfolio 360˚ platform for quick and accurate portfolio analysis."
Moreover, DBS Treasures Private Client has expanded its client network to Singapore, one of the financial centres in Asia, offering competitive SGD currency exchange rates, a variety of SGD-related investment options, exclusive offerings in the DBS Singapore Marketplace (travel, education, health), zero-fee cash withdrawals at 699 DBS/POSB ATMs in Singapore, and emergency cash withdrawals of up to SGD15,000/day to maintain liquidity. All these features are provided to ensure clients always stay ahead of the curve and optimise their wealth, enabling them to "Live more, Bank less."
For more information about DBS Treasures Private Client, visit this page.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.