SCB CIO, together with BlackRock, has raised its investment weighting in emerging market or EM equities to Overweight, taking the view that several markets stand to benefit from investment in AI and advanced technology, particularly South Korea and Taiwan, which play a key role in the global technology supply chain and serve as manufacturing bases for chips and electronic components supporting the expansion of AI. Meanwhile, the earnings outlook for companies in these markets remains strong, and valuation levels are not yet stretched relative to developed markets. Investment in EM will focus selectively on companies that benefit from the AI megatrend, the transition to a digital economy, and investment in new-era infrastructure. On the US equity market, SCB CIO maintains a positive view and assigns it a greater weighting than other major markets, supported by AI investment, which is driving a structural transformation of the global economy. For fixed income, yields at elevated levels make income-generating opportunities attractive again, with more than 84% of global bonds offering yields above 4%. The focus is on the middle segment of the yield curve, namely 3-7 year US Treasuries and US government mortgage-backed securities, while remaining Underweight long-dated US Treasuries and Japanese government bonds. It also maintains a Neutral weighting in short-duration high-quality corporate bonds but is Underweight long-duration high-quality corporate bonds.
SCB X Public Company LimitedSCB CIO raised its EM equity weighting to Overweight and maintains a positive US equity view, reflecting its investment strategy.
BlackRock IncBlackRock, together with SCB CIO, raised EM equities to Overweight, a positive investment-stance development for the asset manager.
