Meyado Private Wealth Management Singapore says top asset picks continue to focus on the commodity sector, emerging markets and high yield bonds.
Concerns over the weakness of the US dollar have kept investors away from the US market, although Meyado is starting to see increased interest in the US residential property and consumer goods sectors.
In addition, there is as increased interest in companies based in Canada and Australia as well as in the more mainstream US market.
Rising oil prices have made companies involved in exploration, shipping and broking of oil very attractive and they continue to attract high levels of interest from investors of all currencies.
Foreign exchange trading has been the mainstay of many clients’ portfolios, particularly in Singapore, with high interest rates in Australian and Kiwi dollars. Singaporeans are attracted to dual currency accounts as they are regarded as a safe haven for funds, over and above investing directly in the markets.
Mark Paine (pictured), managing director of Meyado Singapore, says: “When evaluating asset allocation, the philosophy at Meyado is to allocate assets with the medium term in mind, which we would define as three to five years. However, the method clients choose to access these assets also plays an important role.
“The ETF market is gaining in popularity with clients looking for inexpensive ways to access asset classes. However, it is important for clients to consider that ETFs are very appealing when markets are steadily rising but with volatility prevalent, particularly in the equity markets, fund managers are showing their worth in a number of cases. Discount retailers have also been particularly attractive to many of our clients.”
