Financial markets fear uncertainty over US tariffs, erratic cuts to the government and immigration curbs may stall US growth. Despite the uncertainty, the fund is positioned to navigate through short-term market volatility by tactically allocating assets based on market conditions and the bank’s house views.

This evergreen core strategy for OCBC Group clients integrates ‘Supertrends’ – structural trends shaping markets over the next decade, promoting sustainable growth in the long term and ensuring stable capital growth.

While the Trump tariffs is a headwind for the region, Trump’s bark is normally worse than his bite and that his outsized threats are usually used as a negotiating tool with the outcome is usually more moderated. China’s terrific ten has outperformed U.S magnificent 7, while Asia Pacific ex Japan & China continues to look attractive from an equity valuations point of view.

This Fund aims to capitalise on these emerging opportunities, focusing on long-term capital appreciation through investments primarily in Asia Pacific (excluding Japan) equities. It targets both emerging and developed markets across a diverse range of industries and sectors.

The current macroeconomic environment highlights the resilience of emerging markets, with the growth gap between emerging and developed markets nearing a five-year high, largely driven by strong performance in Asia. Asian bond yields are close to their highest levels in recent years, offering attractive opportunities for investors. With favorable yields and lower duration compared to the US and EU, Asia presents the potential for higher total returns over time. Additionally, Asia's investment-grade credit has consistently delivered some of the best risk-adjusted returns, making it an appealing option for investment in the current market landscape.

The current macroeconomic landscape is shaped by changing fiscal policies, inflationary pressures, and a pro-growth agenda, presenting both opportunities and risks for investors. As disparities in market valuations become more evident, it is important to pinpoint companies that exhibit lower volatility, high quality, and robust stability to navigate market fluctuations effectively.

The Fund identifies these high-quality, stable companies, seeking undervalued opportunities for strong capital growth. With a well-diversified portfolio across developed and emerging markets, the Fund is positioned to adapt to shifting market conditions and capture growth opportunities.

In the current macroeconomic environment marked by volatility and uncertainty, the Fund offers exposure to global megatrends, providing access to sustainable, long-term growth opportunities that are insulated from short-term market headwinds.

By focusing on high-quality companies with strong fundamentals, consistent free cash flow, and alignment with transformative global megatrends, the Fund delivers both stability and growth potential across different market conditions. Its disciplined valuation approach and focus on downside protection make it a compelling choice for investors seeking resilience and robust returns.

Since last November, the US bond markets have shown notable optimism, whereas Europe has reflected significant pessimism. From a duration perspective, the Fund was positioned with a significant overweight to US government bonds and US Dollar which should benefit from any potential rate cut.

The Fund can generate attractive returns in a variety of market conditions, including both a “soft landing” (no recession) and a “hard landing” (i.e. recession) scenario. Additionally, the fund is dynamically managed, and exposures will change as market conditions evolve and as new opportunities arise.