Adapting to Shifting Winds Inbox Through The Eyes Of StanChart

Standard Chartered has released its Global Market Outlook for the second half (H2) of 2024, providing its investment strategy and key themes for navigating global markets.

The report, compiled by the Bank’s Wealth Solutions Chief Investment Office (CIO), notes that the start of major central bank rate cuts is a key turning point for investors as policymakers switch their focus towards supporting growth. The Bank’s CIO sees this as a good time to adapt to the shifting winds by:

(i)            Staying Overweight equities over bonds and cash

(ii)           Favoring US equities globally and Indian equities in Asia

(iii)          Owning gold and Emerging Markets US Dollar bonds as diversifiers.

Given this environment, balanced foundation allocations comprising equities, bonds, and alternative assets are likely to outperform allocations that are solely aimed at generating income. The Bank’s Balanced allocation has risen 6.7% year-to-date, outperforming income-oriented strategies, which rose 0.5%.

For opportunistic allocations, the team continues to favor growth sectors in the US focused on the technology and communication service sectors. In Europe, the barbell-like strategy is consistent with the improvement in the growth outlook; the team is Overweight in the technology and healthcare sectors. In China, the team favors select government policy beneficiaries and is Overweight in the technology, communication services, and consumer discretionary sectors.

Manpreet Gill, Global Chief Investment Officer, said, “Staying invested for the long term, adapting to trend shifts, and keeping a watch for opportunistic ideas to add to a diversified portfolio. This is our fundamental investment approach which also underpins our latest outlook report. We hope that by adapting to the shifting winds of policy changes in the coming months, investors can reposition their portfolios to achieve optimal returns that meet their long-term financial goals.”

Paul Njoki, Head of Wealth and Affluent Banking, Kenya and East Africa, said: “Our clients remain largely optimistic about economic opportunity in the country, however at the same time, they are closely monitoring developments and shifting their focus to understand the impact of current events on their wealth. By working alongside them to understand their individual goals and risk tolerance, we can create investment strategies that capitalize on the benefits of a well-diversified, long-term foundation portfolio with sufficient protection to address their needs.”

Standard Chartered’s SC Wealth Select Framework focuses on helping clients prosper and achieve their life goals using a structured approach engineered to grow, manage protect, and grow their wealth in immediate, short, and long-term scenarios. Known as the Today, Tomorrow, Forever approach, the Framework matches Standard Chartered’s over 100 years of experience with real-time insights to guide clients on their wealth journeys.

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