Investment outlook 'positive' for equity and fixed income asset classes: UOB Asset Management

SINGAPORE - The investment outlook for both equity and fixed income asset classes continues to be positive, according to a report by UOB Asset Management (UOBAM) on Friday.

"Improving global economic growth in 2015, combined with low inflation and supportive monetary policies, will lead to a year of moderate performance distributed broadly and similarly across most regions," it said.

UOBAM noted that there is still "very low inflation" on Friday, with policies such as quantitative easing programmes being implemented across the world to stimulate money supply and global liquidity.

While it had previously highlighted a number of risks that could create volatility this year - which remain largely the same this quarter - UOBAM said it is "more comfortable with them now, given that they appear to have been tackled earlier than expected".

European deflation and policy risks, for instance, were addressed largely by the European Central Bank in the first quarter.

European politics, which appeared "worrisome" at the start of the year, have been managed "reasonably well" in the face of the Greek election results as well.

UOBAM also pointed to the anticipated rise in interest rates in the United States, which could lead to volatility in the market.

"Though the investment market needs to continue to monitor China's growth deceleration, it has responded well to the corresponding cuts in the country's interest rate and reserve requirement ratio."'

tsjwoo@sph.com.sg