Lifestyle

Recently, the fund service performance report for WeLab Bank has been released, and we&#x27;d like to share some good news with everyone! 📈 Our customers have performed exceptionally well in terms of investment returns in both the GoWealth Digital Wealth Advisory and the Featured Funds services, which is encouraging!100% of customers with the GoWealth Digital Wealth Advisory have positive returns (1)!100% of our GoWealth Digital Wealth Advisory customers with holding have positive return! The most outstanding customer even recorded a return of +46.41% (1)! The performance is amazing! 🤩<h4 data-block-key="d0lco">The Featured Funds service also performs brilliantly!</h4>Among our Featured Funds customers with holding, 96% have recorded positive return (2)! 💪🏻 And the highest return achieved is +63% (2)!<h4 data-block-key="f8jdt">Customer Behaviour Change Analysis^ </h4>As of July 2025, following significant changes in the behaviour of our customers have been observed, while more and more new customers are attracted!<ul><li data-block-key="bpe2n">User and Investment Amount Growth 📈: Investing in funds is becoming increasingly attractive to our customers. Customers who are new (3) to our fund investment services continues to increase.</li><li data-block-key="40vpt">High Positive Return Rate 💰: Up to 96% of our customers who are new to our fund investment services have recorded positive returns (2)!</li><li data-block-key="4sp4q">Increased Re-investment Intent# 👍🏻: The number of customers who have increased their investments in July 2025 nearly doubled, demonstrating increased confidence in investment environment!</li><li data-block-key="4lf9f">Investment Theme Shift 🚀: The most popular investment themes have also changed! Money market funds were the most popular investment theme in the first two quarters of 2025, but starting in July 2025, the focus shifted to &#x27;Income Generator&#x27; strategies. Reflecting that our customers are increasingly valuing passive income streams!💸</li></ul><h4 data-block-key="7qe41">Why Choose WeLab Bank for Fund Investments?</h4><ul><li data-block-key="6p08p">Open an account online anytime, anywhere – easy and convenient</li><li data-block-key="bi5ka">$0 Subscription/Switching Fees, breaking traditional bank high fees</li><li data-block-key="7elir">Covering top global funds – carefully selected over 150 funds</li><li data-block-key="5rklt">“GoWealth Digital Wealth Advisory helps you easily manage your investment portfolio <a href="https://www.welab.bank/en/feature/wealth/">Learn More</a></li></ul><hr/>(1) Based on the unrealized profit/loss of investment portfolios held by customers through GoWealth Digital Wealth Advisory as of July 23, 2025, excluding any applicable fees and charges.(2) As of July 23, 2025, the unrealized profit/loss of all funds held by customers through the Featured Funds service, excluding any applicable fees and charges.(3) “New Customer”: Customers who successfully open both a Core and an Investment account between July 1st and July 23rd, with the Investment account opened within 30 days of the Core account(4) Percentage change in total investment amount of customers between January 1 and July 23 2025.^ Data as of July 23, 2025, including but not limited to customer portfolio performance, customer growth, subscription volume, and other data.# Comparing the percentage change in customers’ re-investment intention between June and July 2025, i.e., the behaviour of customers making additional subscriptions after their initial subscription to a fund product.Open an account now, to grow your wealth.<a href="https://www.welab.bank/en/feature/download/">Download Now | WeLab Bank</a>Important Disclaimer:This webpage is for reference only and does not constitute an offer, solicitation, advice, opinion, or any guarantee to anyone to buy, subscribe, or trade any investment product or service. Investment products or services are not the same as, nor should they be considered a substitute for, fixed deposits.Investment involves risk, fund prices can go up or down, and may even become worthless. Depending on market conditions, some investments may not be immediately realizable. Please read our financial service terms (including risk disclosure) and relevant fund sales documents carefully to understand our financial services and more information about the funds, including their risk factors.The investment decision is made by you, but you should not invest in the products or services mentioned on this webpage unless the intermediary has explained to you, considering your financial situation, investment experience, and goals, that the product or service is suitable for you when selling this product.Before making any investment decision, you must assess your own financial situation, investment goals and experience, willingness and ability to take risks, and understand the nature and risks of the product.If you have any questions about the products or services mentioned on this webpage, conducting transactions, or the nature and risks of the funds, you should seek advice from an independent financial advisor.Any content on this webpage should not be construed as a distribution, offer for sale or solicitation to purchase any securities or investment products in any jurisdiction where such an act would be illegal under the laws of that jurisdiction.If you are outside of Hong Kong, please understand and comply with any relevant restrictions. Continuing to purchase constitutes your declaration and guarantee that you are a Hong Kong resident, or that the applicable law or regulations in your jurisdiction allow you to access the information on this website or our application and make purchases.This webpage is published by WeLab Bank and the content has not been reviewed by the Securities and Futures Commission.This Chinese webpage is a translation of the English version. In the event of any conflict or inconsistency between the Chinese and English versions, the English version shall prevail.

GoWealth

Congratulations! WeLab fund users have achieved remarkable investment returns, with 96% of customers using the Self-Directed Fund Service and 100% of those using the GoWealth Digital Wealth Advisory Service have recorded positive returns!

In recent years, more and more people are choosing to immigrate to countries like the UK, Canada, and Australia. Whether it&#x27;s for BNO immigration, studying abroad, or work, the first step is to handle foreign currency exchange. Traditional banks often charge high fees with non-transparent exchange rates – how can you save the most? 【Best Foreign Currency Exchange Option for Immigration in 2025: WeLab Bank – $0 Fees + Favourable Exchange Rates】 is the guide you should definitely refer to!<h2 data-block-key="evc8b">GBP/HKD Exchange Rate Increased Nearly 7%1! A Full Analysis of the GBP/HKD Exchange Rate Trend in 2025</h2>In the first half of 2025, the GBP/ HKD exchange rate showed a clear trend of HKD depreciation and GBP appreciation. According to historical data, the GBP/ HKD exchange rate reached a peak at 10.787 HKD on July 1, and hit a low of 9.8846 HKD on March 3. The average exchange rate for six months was 10.409 HKD1.Overall, the GBP/ HKD exchange rate increased by 6.54%1 during this period, reflecting a clear weakening of the HKD against the GBP. Key reasons include:<ul><li data-block-key="oa1k">Better-than-expected UK economic performance, with stable GDP growth supporting the Pound.</li><li data-block-key="17k33">The Bank of England still maintained a relatively high interest rate, offering support to GBP.</li><li data-block-key="9t2kh">A weakening USD dragged down the HKD, leading to broad depreciation against other major currencies.</li></ul>For families planning to immigrate to the UK or arrange for their children to study there, the appreciation of GBP was more favorable to exchange early. Delaying the exchange may result in needing more HKD to get the same amount of GBP, increasing financial pressure.<h2 data-block-key="ua8j">Immigration Financial Planning Amid HKD Depreciation: When to Exchange CAD?</h2>In the first half of 2025, the CAD/HKD exchange rate showed an upward trend in the first half of 2025. According to historical data, the rate hit the low of 5.3698 HKD on March 3 and peaked at 5.7832 HKD on June 16 — an increase of about 5.60% over the past 6 months1.The six-month average exchange rate was 5.6246 HKD1, indicating that the CAD remained relatively stable while the HKD weakened, mainly due to USD policy impacts. Key factors include:<ul><li data-block-key="flv1f">HKD weakened due to USD policy and widening interest rate differentials.</li><li data-block-key="deng4">The Bank of Canada maintaining stable interest rates, supporting the Canadian dollar.</li></ul>For Hong Kongers planning to immigrate to Canada, the exchange rate trend means that delaying the exchange might result in financial losses. It is recommended to use WeLab Bank’s best rates to exchange CAD, taking advantage of the $0 fee benefit in foreign exchange and save more.<h2 data-block-key="60v2u">HKD to AUD Exchange Rate Analysis: A Must-Read for Hong Kongers Before Moving to Australia</h2>In 2025, the AUD/HKD exchange rate showed a pattern of HKD depreciation and AUD appreciation. According to historical data, the highest rate was 5.1822 HKD on July 23, and the lowest was 4.6277 HKD on April 8. The average rate over the past 6 months was 4.9856 HKD1.Overall, the AUD/HKD rate rose 6.01% over the past six months1, indicating HKD’s depreciation against AUD. This trend reflects that the AUD’s value is supported by various factors, including:<ul><li data-block-key="7qdkk">The Reserve Bank of Australia was maintained a hawkish policy stance, driving up demand for AUD.</li><li data-block-key="9vsol">A weakening US dollar dragging down HKD, causing it to generally depreciate against other currencies.</li></ul>For families planning to immigrate to Australia or arrange for their children to study abroad, the appreciation of AUD means early currency exchange was more favorable. Delaying the exchange might require more HKD to obtain the same amount of AUD, increasing financial pressure.Foreign exchange through WeLab Bank not only allows you to get access to real-time exchange rate information with $0 transaction fees, but also saves you more compared to traditional banks. Whether you are preparing to pay tuition, living expenses, or a down payment on a house, exchanging foreign currency through WeLab Bank allows you to plan ahead and choose a low-cost platform — a key financial strategy before immigration.<h2 data-block-key="3j33a">🌍 No matter which country you immigrate to, WeLab Bank’s App allows you to easily exchange 11 currencies!</h2><ul><li data-block-key="2bkho">WeLab Bank Best Rate^ AI Exchange Rates at a Glance</li></ul>WeLab Bank uses AI to compare foreign exchange rates across major banks, making it super easy to get the best rate when exchanging foreign currency. That’s what we call the WeLab Bank Best Rate!Learn more about AI exchange rate: <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a>Learn more about foreign exchange: <a href="https://www.welab.bank/en/feature/foreign-exchange/">Exchange Currency with Ease</a><ul><li data-block-key="3sdgf">Zero Fee on Cross-Border Transfers*</li></ul>During the promotion period, all outbound remittance transactions successfully made through the “Cross-Border Transfer” function of the WeLab Bank App are exempt from WeLab remittance fees. The actual waived fee amount ($0) will be displayed directly in the WeLab Bank App when you submit the remittance transaction.Learn more about global remittance: <a href="https://www.welab.bank/en/feature/global-remittance/">Guide for Global Remittance</a><ul><li data-block-key="f77hv">Security</li></ul>WeLab Bank is a licensed bank in Hong Kong, and your deposited foreign currency is protected by the Deposit Protection Scheme, with a maximum coverage of HKD 800,000 per depositor2, making it safe and reliable.Learn more: <a href="https://www.welab.bank/en/blog/behind-the-scenes/deposit-your-money-in-digital-banks-with-a-peace-of-mind-hkd800k-deposit-protection-scheme/">Deposit Protection Scheme</a>So, whether you’re investing in foreign currency or traveling, earning the spread with WeLab is that simple!<hr/>Disclaimers:^Terms and conditions apply. Please refer to <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a> for details.*From now until December 31, 2025, all outward remittance successfully made through the “Global Remit” function in the WeLab Bank App can enjoy WeLab Bank remittance handling fee waivers. Terms and conditions apply: https://welab.app.link/e/aNd7u0OM5Ub(1) The information covers the period from 28 February to 29 August, 2025. The above information sourced from a third-party platform (i.e. Exchange-Rates.org). Some figures have been rounded to two decimal places and are provided for reference only. (2) WeLab Bank is a member of the Deposit Protection Scheme. Eligible deposits taken by this Bank are protected by the Scheme up to a limit of HKD 800,000 per depositor.Currency exchange involves risks. Foreign exchange markets are subject to unpredictable fluctuations. If you choose to convert your HKD or foreign currency deposit to other currencies, such foreign exchange transactions will be subject to risk arising from exchange rates fluctuation. As a result, you may suffer losses. The information above is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter any transaction.

In recent years, more and more people are choosing to immigrate to countries like the UK, Canada, and Australia. Whether it's for BNO immigration, studying abroad, or work, the first step is to handle FX.

Best Foreign Currency Exchange Option for Immigration in 2025: WeLab Bank – 0 Fees + Favorable Exchange Rates

Best Foreign Currency Exchange Option for Immigration in 2025

Thinking of investing in funds but heard that there are many fees that reduce your profits? Today, we’ll help you understand the different fees associated with funds and how they impact your returns💰!<h4 data-block-key="22ft1">💡One-time Fees: Subscription Fees, Redemption Fees, and Switching Fees</h4>When buying funds, the most common fees are subscription fees, redemption fees, and conversion fees. As the name suggests, investors typically pay a one-time subscription or purchase fee as a commission 💵 for the fund trading service when buying funds through banks, securities companies, fund trading platforms, or insurance companies. This fee is usually deducted directly from your investment principal and generally ranges from 1.5% to 3%, depending on the specific company or fund.For example, if your investment principal is HK$1,000,000 and the subscription fee is 3%, after deducting HK$30,000 for the subscription fee, your actual investment amount would be HK$970,000.A redemption fee is charged when selling a fund. However, in Hong Kong, most fund companies or trading platforms do not charge this fee, but investors should be aware of individual platforms that may impose such charges🧐.As for the conversion fee, this is what investors pay when they withdraw money from one fund to purchase another. The conversion fee typically hovers around 1%. Compared to subscription fees, conversion fees are usually lower, but be mindful of any additional terms🔍, such as only being allowed to convert between funds within the same fund company.<h4 data-block-key="5qlr1">💡Ongoing Fees: Management Fees and Others</h4>In addition to the one-time fees mentioned above, ongoing fees will be incurred while holding the fund, with the most well-known being the management fee. The management fee compensates the fund manager and team for regularly updating asset allocations. This fee is continuously deducted from the total value of the fund held. Other fees, such as custodian fees or administrative fees, are charged in the same manner, meaning these costs are already reflected in the fund&#x27;s total balance and will not be deducted from your investment principal.<h4 data-block-key="2jdsi">✨WeLab Bank Breaks the Traditional Fund Fee Model</h4>WeLab Bank understands the importance of investment principal and flexibility. Therefore, both the Featured Funds service and GoWealth Digital Wealth Advisory completely waive subscription fees, redemption fees, and switching fees. You can invest 100% of your principal without worrying about these costs💪🏻.Instead, WeLab Bank charges a flat monthly fee of 0.1%* based on your total fund value, helping you save nearly 85% on transaction fees#!<h4 data-block-key="epr5g">🔍How Fees Impact Returns and Investment Deployment</h4><img class="fullwidth" src="/media/images/table_EN.2e16d0ba.fill-1254x451.png" alt="table_EN" />✨Choosing WeLab Bank results in a 6.7% higher annualized return compared to traditional banks.Since WeLab Bank charges monthly, you can switch to other funds or redeem without worries, making your deployment more flexible🔥.<h4 data-block-key="67mt9">Want to Know How Great WeLab Bank’s Fund Services Are🤩?</h4><a href="https://www.welab.bank/en/blog/gowealth_insights/welab-fund-users-achieved-remarkable-investment-returns/">Check out and know more!</a><h4 data-block-key="f5os">Open an account now, to grow your wealth.</h4><a href="https://www.welab.bank/en/feature/download/">Download Now | WeLab Bank</a><hr/>* Monthly fund platform fee is an aggregate amount of the daily fee within the month. Daily fee is calculated based on the daily market value of all your settled fund holdings in HKD (or HKD equivalent based on daily reference rate) under Featured Funds Services, excluding all money market fund holdings, multiplied by the fund platform fee monthly rate and divided by the number of calendar days of the month. For fund asset class information, please refer to the fund details page in WeLab Bank app.#Assuming the subscription fee rate is 2%, customers who use our Featured Funds Services can save 85% of transaction costs in the above two examples compared with the traditional charging model charging with subscription fee. The examples above are for illustration purposes only. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).Disclaimer:This webpage is for reference only and does not constitute an offer, solicitation, advice, opinion, or any guarantee to anyone to buy, subscribe, or trade any investment product or service. Investment products or services are not the same as, nor should they be considered a substitute for, fixed deposits.Investment involves risk, fund prices can go up or down, and may even become worthless. Depending on market conditions, some investments may not be immediately realizable. Please read our financial service terms (including risk disclosure) and relevant fund sales documents carefully to understand our financial services and more information about the funds, including their risk factors.The investment decision is made by you, but you should not invest in the products or services mentioned on this webpage unless the intermediary has explained to you, considering your financial situation, investment experience, and goals, that the product or service is suitable for you when selling this product.Before making any investment decision, you must assess your own financial situation, investment goals and experience, willingness and ability to take risks, and understand the nature and risks of the product.If you have any questions about the products or services mentioned on this webpage, conducting transactions, or the nature and risks of the funds, you should seek advice from an independent financial advisor.Any content on this webpage should not be construed as a distribution, offer for sale or solicitation to purchase any securities or investment products in any jurisdiction where such an act would be illegal under the laws of that jurisdiction.If you are outside of Hong Kong, please understand and comply with any relevant restrictions. Continuing to purchase constitutes your declaration and guarantee that you are a Hong Kong resident, or that the applicable law or regulations in your jurisdiction allow you to access the information on this website or our application and make purchases.This webpage is published by WeLab Bank and the content has not been reviewed by the Securities and Futures Commission.This Chinese webpage is a translation of the English version. In the event of any conflict or inconsistency between the Chinese and English versions, the English version shall prevail.

Thinking of investing in funds but heard that there are many fees that reduce your profits? Today, we’ll help you understand the different fees associated with funds and how they impact your returns!

Fund Investment Guide Wondering how fund fees erode your returns?

Fund Investment Guide - Wondering how fund fees erode your returns?

Foreign exchange (FX) is currently the most popular, heavily traded, and largest financial market in the world. Investors can profit by buying and selling different currencies, capitalizing on fluctuations in exchange rates. For example, an investor can enter the market when a currency weakens and sells it when the rate strengthens, earning the difference. If the exchange rate increase doesn&#x27;t meet expectations, you can always hold onto the currency for future travel or earn interest through foreign currency fixed deposits. Therefore, FX investment is considered a relatively stable option.<h2 data-block-key="dmfik">What types of foreign currencies are there?</h2>If you&#x27;re buying and selling foreign currencies for investment purposes, it&#x27;s important to understand that currencies can generally be categorized into four types:<ol><li data-block-key="3hf">Policy-Based Currencies:</li></ol>These currencies are largely influenced by central bank policies, typically related to interest rates and inflation. Their value is affected by government or central bank monetary policy decisions.Examples:US Dollar (USD): The US Federal Reserve adjusts interest rates, implements quantitative easing or tightening policies, and current tariff policies all impact the supply and demand for the US dollar based on economic data and market conditions.Euro (EUR): The European Central Bank adjusts interest rates and other monetary policy tools to stabilize the economy and control inflation. The Euro&#x27;s value is also influenced by the economic performance and policy coordination of its member states.<ol><li data-block-key="56mkk">Safe-Haven Currencies:</li></ol>Safe-haven currencies are those that investors tend to flock to during periods of economic instability or market turmoil and are generally seen as safe assets.Examples:Japanese Yen (JPY): Japan’s stable economy and relatively low inflation rate make the Yen particularly attractive during times of uncertainty.Swiss Franc (CHF): Due to its stability and conservative fiscal policies, the Swiss Franc is frequently used as a safe-haven asset.<ol><li data-block-key="dt5ut">Commodity-Based Currencies:</li></ol>These currencies are closely linked to the price of a particular commodity (such as oil, metals, etc.) and often come from resource-rich countries.Examples:Canadian Dollar (CAD): Because Canada has abundant oil resources, its exchange rate is closely correlated with the price of crude oil.Australian Dollar (AUD): Australia is a major exporter of minerals, and its currency value is affected by commodity prices.<ol><li data-block-key="180hn">Emerging Market Currencies:</li></ol>Emerging market currencies come from developing economies, which have higher economic growth potential but also face higher risks and volatility.Examples:Chinese Yuan (CNY): China’s currency, as the currency of the world&#x27;s second-largest economy, is closely watched by the market.Indian Rupee (INR): India’s currency, which is gaining importance with economic development.Beyond these factors, exchange rates are also influenced by other considerations. Therefore, it’s important to always be aware of the risks and potential losses resulting from fluctuations in exchange rates.<h2 data-block-key="1r0np">Ultimate Foreign Currency Exchange Hack – Earn the Spread with One App</h2><ul><li data-block-key="3uvjt">WeLab Bank Best Rate^ AI Exchange Rates at a Glance</li></ul>WeLab Bank uses AI to compare foreign exchange rates across major banks, making it super easy to get the best rate when exchanging foreign currency. That’s what we call the WeLab Bank Best Rate!Learn more about AI exchange rate: <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a>Learn more about foreign exchange: <a href="https://www.welab.bank/en/feature/foreign-exchange/">Exchange Currency with Ease</a><ul><li data-block-key="8t61m">Zero Fee on Cross-Border Transfers*</li></ul>During the promotion period, all outbound remittance transactions successfully made through the “Cross-Border Transfer” function of the WeLab Bank App are exempt from WeLab remittance fees. The actual waived fee amount ($0) will be displayed directly in the WeLab Bank App when you submit the remittance transaction.Learn more about global remittance: <a href="https://www.welab.bank/en/feature/global-remittance/">Guide for Global Remittance</a><ul><li data-block-key="6ir08">Security</li></ul>WeLab Bank is a licensed bank in Hong Kong, and your deposited foreign currency is protected by the Deposit Protection Scheme, with a maximum coverage of HKD 800,000 per depositor1, making it safe and reliable.Learn more: <a href="https://www.welab.bank/en/blog/behind-the-scenes/deposit-your-money-in-digital-banks-with-a-peace-of-mind-hkd800k-deposit-protection-scheme/">Deposit Protection Scheme</a>So, whether you’re investing in foreign currency or traveling, earning the spread with WeLab Bank is that simple!<hr/>Disclaimers:^Terms and conditions apply. Please refer to <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a> for details.*From now until December 31, 2025, all outward remittance successfully made through the “Global Remit” function in the WeLab Bank App can enjoy WeLab Bank remittance handling fee waivers. Terms and conditions apply: https://welab.app.link/e/aNd7u0OM5Ub(1) WeLab Bank is a member of the Deposit Protection Scheme. Eligible deposits taken by this Bank are protected by the Scheme up to a limit of HKD 800,000 per depositor.Currency exchange involves risks. Foreign exchange markets are subject to unpredictable fluctuations. If you choose to convert your HKD or foreign currency deposit to other currencies, such foreign exchange transactions will be subject to risk arising from exchange rates fluctuation. As a result, you may suffer losses. The information above is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter any transaction.

Foreign exchange (FX) is currently the most popular, heavily traded, and largest financial market in the world. Investors can profit by buying and selling different currencies, capitalizing on fluctuations in exchange rates.

Foreign currency trading basics: Understanding the basic classification of foreign currencies

We love to travel around, so foreign exchange is nothing new to us. But sometimes, even after doing all your research online, things are different when you actually go to exchange money. Or, when you get to the bank or money changer, you&#x27;re faced with so many exchange rates, ask and bid prices, and it just makes your head spin.This article will help you easily grasp the basic concepts of foreign exchange.<h2 data-block-key="b2rck">What is Foreign Exchange?</h2>Simply put, currency exchange is using one currency to exchange for another. For example, converting Hong Kong Dollars to US Dollars, or US Dollars to Japanese Yen – these are all examples of currency exchange. 🌍 The foreign exchange market operates 24/5, with transactions happening globally and highly liquid major currencies, making it full of opportunities!<h2 data-block-key="a6hv">Price Comparison Essential! How to Interpret Exchange Rates</h2>Many people check FX rates online before exchanging currency, but don’t assume you&#x27;ll actually get that rate when you exchange money. The exchange rates you see online are usually the average of buy and sell prices. In reality, each bank and exchange shop will have different exchange rates. So, what you really need to learn to look for is each shop’s &quot;Ask&quot; (selling) price and &quot;Bid&quot; (buying) price.<ul><li data-block-key="25pvb">Ask Price</li></ul>The “Ask” price is the price at which a bank or exchange shop is willing to sell you foreign currency (and buy Hong Kong Dollars from you). Remember, the lower the number, the better.<ul><li data-block-key="88ele">Bid Price</li></ul>If you want to sell your foreign currency and exchange it back into Hong Kong Dollars, you&#x27;ll use the “Bid” price. The higher the number, the better for you.The difference between the buy and sell prices is the “spread”.<h2 data-block-key="cim17">What is a “Currency Pair”?</h2>Why can’t you just choose US Dollars or Japanese Yen directly to make a trade? Why does foreign exchange always involve buying and selling currency pairs? This is because the price of a currency is always determined by comparing it to another currency. A currency pair is the basic unit of foreign exchange trading, usually represented by a combination of two currencies, such as EUR/USD (Euro/US Dollar). The first currency represents the “base currency,” and the second represents the “quote currency.” When you buy a currency pair, you are actually buying the base currency (EUR) and simultaneously selling the quote currency (USD).Now that you know how to read prices, you need to be aware that different channels and methods will affect the exchange rate and fees.Here’s an introduction to the two most common methods of currency exchange.<h2 data-block-key="79h6j">Cash Exchange VS Telegraphic Transfer Rate</h2>Cash Exchange: Going to a bank or exchange shop to instantly exchange cash, handing over money and immediately receiving the foreign currency. As banks or exchange shops have costs associated with holding cash, and they don’t keep large amounts of every currency in stock, the exchange rate is usually less favourable, and the amount you can exchange may be limited.Telegraphic Transfer Rate: Simply open a foreign currency account at a bank, find a favourable exchange rate, and exchange currency with a click of a button online. The exchange rate for this method is generally better. However, you should also be aware of any account fees, as earning a good rate but losing money on fees would be counterproductive.<h2 data-block-key="19vlf">Ultimate Foreign Currency Exchange Hack – Earn the Spread with One App</h2><ul><li data-block-key="23f7s">WeLab Bank Best Rate</li></ul>WeLab offers a competitive exchange rate^ , this is the WeLab Bank Best Rate!! Simply successfully exchange foreign currency using the WeLab Bank App, and you can exchange for the corresponding currency at a best-in-class rate*.Learn more about foreign exchange: <a href="https://www.welab.bank/en/feature/foreign-exchange/">Exchange Currency with Ease</a><ul><li data-block-key="frir4">Zero Fee on Cross-Border Transfers</li></ul>During the promotion period, all outbound remittance transactions successfully made through the “Cross-Border Transfer” function of the WeLab Bank App are exempt from WeLab remittance fees. The actual waived fee amount (HK$0) will be displayed directly in the WeLab Bank App when you submit the remittance transaction.Learn more about global remittance: <a href="https://www.welab.bank/en/feature/global-remittance/">Guide for Global Remittance</a><ul><li data-block-key="do3rq">Daily Exchange Rates at a Glance</li></ul>And every day, WeLab Bank helps you compare exchange rates from various banks. Getting a good rate to exchange foreign currency is easy.Learn more about daily exchange rate: <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a><ul><li data-block-key="bbbhp">Security</li></ul>WeLab Bank is a licensed bank in Hong Kong, and your deposited foreign currency is protected by the Deposit Protection Scheme, with a maximum coverage of HKD 800,000 per depositor1, making it safe and reliable.Learn more: <a href="https://www.welab.bank/en/blog/behind-the-scenes/deposit-your-money-in-digital-banks-with-a-peace-of-mind-hkd800k-deposit-protection-scheme/">Deposit Protection Scheme</a>So, whether you’re investing in foreign currency or traveling, earning the spread with WeLab Bank is that simple!<hr/>Disclaimers:^Terms and conditions apply. Please refer to <a href="https://www.welab.bank/en/feature/fx-daily-leaderboard/">Compare the best exchange rates with AI</a> for details.*From now until December 31, 2025, all outward remittance successfully made through the “Global Remit” function in the WeLab Bank App can enjoy WeLab Bank remittance handling fee waivers. Terms and conditions apply: https://welab.app.link/e/aNd7u0OM5Ub(1) WeLab Bank is a member of the Deposit Protection Scheme. Eligible deposits taken by this Bank are protected by the Scheme up to a limit of HKD 800,000 per depositor.Currency exchange involves risks. Foreign exchange markets are subject to uCurrency exchange involves risks. Foreign exchange markets are subject to unpredictable fluctuations. If you choose to convert your HKD or foreign currency deposit to other currencies, such foreign exchange transactions will be subject to risk arising from exchange rates fluctuation. As a result, you may suffer losses. The information above is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter any transaction.

Foreign currency exchange is so complicated? A beginner's guide for beginners to understand currency exchange — WeLab Bank offers the best exchange rates and HK$0 handling fees, helping you save even more!

Foreign Exchange Seems Complicated? A Beginner's Guide to Foreign Exchange

Following a two-day gathering of the Federal Open Market Committee (FOMC), the Fed left interest rates unchanged, made virtually no revisions to its policy statement, and in remarks to the press, Chair Jerome Powell declined to offer forward guidance. Instead, he reiterated the central bank’s data-dependent stance.While broadly expected, the lack of any dovish signal disappointed markets hoping for a clearer path toward a September rate cut. Yields on the U.S. 10-year Treasury note rose a few basis points during the press conference.What made the meeting notable was the rare dissent from two Fed governors. Christopher Waller and Michelle Bowman both favored a rate cut, the first time since 1993 that two governors have dissented simultaneously. Although their votes came during a period when the Trump administration has been pressuring the Fed to lower rates, the dissents also reflect mounting evidence that U.S. growth is cooling.We believe Powell’s comments suggest that slower growth alone is not sufficient to justify a rate cut. The majority of the committee appears to be looking for clearer evidence that labor market risks have risen and that inflation expectations remain anchored. Recent data suggest these risks have risen, which could eventually support the case for rate cuts this fall.<h2 data-block-key="fatfl">Powell stays the course, but risks are rebalancing</h2>Powell’s comments emphasized caution and data dependence, offering few clues about the path ahead. He even downplayed the relevance of the June Summary of Economic Projections, which showed the median Fed official projecting 50 basis points of rate cuts in 2025.Despite the modest sell-off in rates following Powell’s remarks, markets remain priced for about 1.5 cuts of 25 basis points each by year-end. That still looks plausible given the direction of recent data, which are consistent with a balance of risks that is tilting back in favor of the Fed bringing interest rates back to a more neutral setting.On the same morning as the FOMC meeting, the advance estimate for second-quarter GDP showed the U.S. economy grew at a 3.0% annualized rate, rebounding from a 0.5% contraction in the first quarter. However, the improvement was driven by a drop in imports, reflecting volatility in trade flows related to tariffs. Notably, real final sales to private domestic purchasers – a key measure of underlying demand – rose just 1.2%, down from 3% in 2024.Meanwhile, after three months of elevated tariffs, data show businesses have been slow in passing on higher costs to consumers. So far, corporate profits appear to be absorbing much of the impact. Moderating consumer demand has also allowed service inflation to cool, providing some offset to overall inflation.Taken together, we believe the balance of risks to the U.S. outlook suggests the Fed could ultimately resume cutting rates later this year. However, as Powell emphasized, the Fed will remain data dependent.<hr/>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

PIMCO Insight – Powell Keeps Market Waiting for More Data

*只限繁體中文版本*WeLab Bank（「匯立銀行」）早前夥拍環聯推出市場首創「智能財務健康分析」，自推出以來其廣受歡迎，已錄得過萬次查閱，有效提升市民對財務健康的認知。「智能財務健康分析」讓用戶透過 WeLab Bank app以簡單步驟即時掌握個人信貸評分，費用全免、不限次數查閱。數據顯示，貸前評估已成趨勢。近四成用戶會先查閱信貸評分，了解自身財務狀況，從而更有效地選擇貸款方案，以其合適的貸款產品作為靈活理財工具，自主理財。財務健康意識漸趨提高根據環聯2025年第二季消費者脈搏調查，超過95%的香港消費者認同監察個人信貸報告是重要的，並有近八成（79%）消費者曾進行信貸監察，較2024年第四季增加了六個百分點，顯示更多香港市民開始重視自身的信貸狀況。WeLab Bank的「智能財務健康分析」服務，有助鼓勵更多用戶掌握自身財務狀況，提升整體財務健康意識。深受年輕用戶歡迎，有用戶月內最多查閱31次WeLab Bank的「智能財務健康分析」用戶數據顯示，佔近半數為18至35歲的用戶，反映年輕一代對財務健康管理日益重視。服務推出三個月內，平均每位用戶查閱約七次，更有用戶月內最多查閱31次，顯示用戶已建立定期進行財務健康檢查的習慣。另外有37%客戶在此前一年內從未曾進行任何信貸監察，藉此服務踏出財務健康管理的第一步，期望更容易達成長短期財務目標。貸前評估成趨勢，近半數查閱信貸報告用戶已持貸款戶口貸款與財務健康息息相關，良好的財務健康不僅能提升貸款批核機會，更有助於獲得更高信貸額度，甚至優化按揭及其他貸款條件。「智能財務健康分析」用戶數據顯示，37% 客戶在申請信貸產品前，會先透過WeLab Bank查閱信貸評分，了解自身信貸狀況及財務需求，從而選擇最適合的貸款計劃。 同時，49% 使用該服務的用戶已持有分期貸款戶口，並視貸款為實現財務目標的有效工具。 WeLab Bank行政總裁李家達表示：「WeLab Bank一直致力利用科技創新，希望推動智慧理財助用戶輕鬆實踐財富MSG，即Manage（管理）、Save（儲蓄）及Grow（增值）。我們很高興『智能財務健康分析』在推出短時間內已成功提升公眾對財務健康的關注，期望繼續助用戶以全新角度審視貸款需求，以『先審視後應用』的方法，選擇最適合自己的貸款方案，更早達成理財目標。」期間限定 貸款客戶享額外現金回贈此外，為鼓勵市民重視財務健康，由即日起至8月31日，WeLab Bank用戶使用「智能財務健康分析」服務查閱個人信貸狀況後，申請指定私人貸款（包括私人分期貸款及清卡數貸款）即可獲額外500港元現金回贈*，加上提取私人貸款可享高達23,888港元現金回贈*，即總現金回贈可高達24,388 港元*。借定唔借？還得到先好借！*優惠受條款及細則約束，詳情請參閱 <a href="https://www.welab.bank/media/documents/20250801_WeLab_Bank_Smart_Rewards_Loan_application_offer_Aug_TnCs.pdf">「智能財務健康分析」客戶專享「智」富獎賞 – 私人貸款 HKD500 現金回贈條款及細則</a> 及 <a href="https://www.welab.bank/media/documents/loan_tc_promotion_tnc.pdf">WeLab Bank私人貸款（私人分期貸款及清卡數貸款）優惠條款及細則</a> 。適用之實際年利率由0.78%－36.00%；貸款額由HKD 10,000至HKD 1,500,000，而還款期為6至60個月。假設貸款額為HKD 600,000，還款期為39個月，實際年利率分別為0.78%（包括現金回贈HKD 9,000）或1.68%（不包括任何現金回贈）， 總還款額為HKD 616,818.60。實際年利率乃根據銀行營運守則之指引計算，並已被約至小數後兩個位及或跟隨個別客戶而有差異。實際年利率是一個參考利率，以年化利率展示出已包括所有適用的利率、手續費及收費。<a href="https://welab.app.link/fM4xcUGKBVb">立即登入WeLab Bank App查看環聯信貸評分</a>

Loan

WeLab Bank與環聯推出「智能財務健康分析」讓用戶透過 WeLab Bank app以簡單步驟即時掌握個人信貸評分，費用全免、不限次數查閱。

WeLab Bank夥環聯推「智能財務健康分析」反應熱烈　查閱次數過萬

WeLab Bank夥環聯推「智能財務健康分析」反應熱烈　查閱次數過萬　有效提升公眾財務健康意識

<h3 data-block-key="tembo">Payouts and Policy: why European dividends matter in an uncertain global landscape</h3>European stock markets are expected to remain highly volatile in the second half of 2025, driven by a mix of geopolitical and economic uncertainties. In addition to persistent tensions in Asia and Europe, the recent escalation of the Iran conflict has introduced new risks to global stability. Concerns around energy supplies and trade routes have intensified market nervousness.<h4 data-block-key="ekfph">Exhibit 1: Market uncertainty has increased since mid-2024</h4><img class="fullwidth" src="/media/images/250801_exhibit-1_en.2e16d0ba.fill-1184x556.png" alt="250801_exhibit-1_en" />Source: LSEG Datastream, AllianzGI Global Capital Markets &amp; Thematic Research 26 June 2025These developments are compounding a fragile investor sentiment. Political uncertainty in the United States, particularly due to the unpredictable trade policies under President Trump, has already contributed significantly to global unease.Between mid-2024 and mid-2025, market uncertainty experienced a notable increase. This period was marked by heightened volatility driven by a combination of economic shifts, geopolitical tensions, and evolving monetary policies. Commodities such as oil and gold experienced sharp fluctuations, and the S&amp;P 500 also showed significant volatility.In June this year, Israel’s attack on Iran resulted in a further surge in gold and oil prices. This demonstrates how quickly markets react to political headlines. The MSCI Europe as well as the S&amp;P500 Index oscillated between brief recoveries and abrupt setbacks over the year, albeit the European index did so with less intensity. This reflects investors’ stance on the current attractiveness of the European market and the relative confidence in the political environment in Europe.Note, too, that the MSCI Europe High Dividend Index showed an even better performance with less volatility, underscoring the defensive nature of companies with strong dividend profiles. These companies typically have solid fundamentals and consistent cash flows, making them more resilient in times of geopolitical tensions and economic stress. Moreover companies with a reliable dividend policy usually have strong balance sheets and robust business models. Their ability to maintain their payouts even under difficult conditions strengthens investor confidence and offers a degree of protection against market turbulence. In this climate, high-dividend companies are gaining relative attractiveness for investors in search of more stability.A historical review of volatility data confirms this. On average, dividend-paying companies in the STOXX Europe 600 index exhibit significantly lower price fluctuations than companies without regular distributions. Furthermore, companies that pay dividends even in times of crisis send a strong signal to the market. They stand for financial stability and reliability – qualities that investors particularly value in a volatile environment.<h4 data-block-key="ab136">Exhibit 2: Volatility of dividend payers is lower than for non-dividend paying companies (STOXX Europe 600)</h4><img class="fullwidth" src="/media/images/250801_exhibit-2_en.2e16d0ba.fill-1192x557.png" alt="250801_exhibit-2_en" />Equally weighted 30-day volatility of dividend payers and non-payers, respectively. Source: LSEG Datastream, Allianz Global Investors Global Capital Markets &amp; Thematic Research. Past performance does not predict future returns. Data as of December 2024.<hr/><h3 data-block-key="b5l3l">Why Europe? Fundamental strength meets structural change</h3>In addition to Europe’s long-standing position as the region with the highest average dividend yields (averaging 3.4% over the past two decades), European equity markets, as measured by the MSCI Europe Index, delivered a comparatively stable performance in 2025, especially when contrasted with the more volatile U.S. market represented by the S&amp;P 500, and this despite ongoing global challenges. A comprehensive economic stimulus package from China including infrastructure investment, monetary easing and support for domestic demand has strengthened the competitiveness of European exporters and bolstered markets.Furthermore, Europe is in the midst of a profound structural transformation. The European Union has launched large-scale investment initiatives in the areas of defence and infrastructure. Germany is shifting away from its traditionally restrictive fiscal stance by launching a €500 billion credit-financed infrastructure program, as part of a broader investment initiative aimed at strengthening the country’s long-term competitiveness1 . The United Kingdom is also sending a strong signal with its ten-year infrastructure strategy. Up to £775 billion2 is to be invested in transport, energy networks, housing and digital infrastructure, accompanied by accelerated approval procedures to promote growth and sustainability.On 25 June 2025, NATO members further agreed to increase their spending on defence and related infrastructure to 5% p.a. by 2035, a commitment that is further bound to transform Europe in the coming decade. These large-scale fiscal investments are expected to have a measurable impact on Europe’s gross domestic product (GDP) – stimulating short-term demand and, more importantly, enhancing long-term productive capacity through a sustained multiplier effect. In an uncertain global environment, they can thus act as a stabilising driver of growth.These developments are not only creating new economic momentum but also strengthening the fundamentals of many European companies.<h3 data-block-key="6hua1">Substance, stability and prospects</h3>In an uncertain market environment, dividend stocks offer a reliable blend of defensive strength, consistent income and long-term growth potential. Europe is attractive not only due to its appealing yields, but also thanks to structural reforms and fiscal support. European dividend stocks currently offer compelling option for investors who value substance and sustainability, offering a blend of resilience, reliable returns and exposure to companies driving the transition towards a more sustainable and future-ready economy.1  Deutscher Bundestag, Gesetzentwurf für ein steuerliches Investitionssofortprogramm zur Stärkung des Wirtschaftsstandorts Deutschland, Drucksache 21/643，2025年6月25日。 2  UK Government, UK Infrastructure: A 10 Year Strategy – GOV.UK，2025年6月19日。<hr/>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz Insight – Navigating Rates

<h3 data-block-key="tembo">Opportunities amidst uncertainty </h3>Shifting trade relations and political alliances have sparked a global reset of economic landscapes. As a result, uncertainty soared across global markets in the first half of 2025. But periods of change often bring new opportunities. In our midyear investment outlook, we share our thoughts on the possibilities for the rest of 2025 and examine how investors can diversify portfolios across regions to weather the volatility.<h3 data-block-key="dqqg8">What to watch for 2H 2025</h3>The evolution of the trade war is the pivotal question at midyear, and continued uncertainty shapes our base case. We have also outlined a downside and upside scenario that could occur if geopolitical tensions escalate, or if we get a reprieve. <h3 data-block-key="921vp">Base Case</h3>For our base case scenario, we believe that US domestic policy volatility and uncertainty are likely to persist for the remainder of the year. We expect US tariffs to be higher than in previous decades, though lower than initially announced on ‘Liberation Day,’ and we expect US-China trading relations to gradually improve. These combined effects would likely cause a mild slowdown in the US economy, although the extension of tax cuts and deregulation could provide a tailwind. Disinflationary pressures in Europe and China should free governments and central banks to stimulate their domestic economies.<ul><li data-block-key="b49c1">Diversification:  We believe it’s important for investors to diversify across geographies and asset classes as the uncertainty continues. We find non-US assets attractive and think they will outperform throughout the remainder of the year.</li><li data-block-key="bj55i">US equities:  After an impressive run, US equities look particularly exposed due to elevated valuations. We favour low volatility, quality, and high dividend factors within the US while limiting exposure to mega-cap names.</li><li data-block-key="3pbks">Chinese policy:  Policymakers are helping household consumption in the country and supporting capital expenditure (CAPEX) in private enterprises. These measures could lead to outperformance of China&#x27;s economic growth relative to the rest of the world. This is likely to benefit investors in Chinese equities.</li><li data-block-key="6lhjl">European markets:  Europe should benefit from greater fiscal spending, an improving consumer backdrop, and further rate cuts from the ECB. The region would also receive an economic boost from Germany’s splurge on defence and infrastructure spending.</li><li data-block-key="1e36o">UK stocks: In the UK, stocks have attractive valuations and consistently high dividend yields. This market has a heavy weighting in financials, which is likely to fare well as mortgage lending improves and interest rate curves steepen.</li><li data-block-key="nrd4">Fixed income:  Given the uncertainty and tight valuations, we are cautious around risk-taking. Following heightened policy volatility and an uncertain US fiscal outlook, we prefer ex-US global bonds.</li><li data-block-key="65ldc">Alternative assets:  We are defensive on this sector due to downside growth risks, high equity valuations, and benign capital markets activity. Within this sector, we see potential in private debt and hedged strategies versus private equity.</li></ul><h3 data-block-key="amq72">Upside Scenario</h3>This is based on a reprieve from the trade war and a policy pivot from the US administration, moderating tariffs and immigration policy while focusing on more pro-growth policies.<ul><li data-block-key="4fsa5">Normalisation of trade policy: A partial normalisation of trade policy would result in an incomplete return to the pre-2025 state. The growth outlook would improve materially outside of the US and offset a mild US slowdown. US-China relations improve.</li><li data-block-key="4dq86">Asset classes we like: In this scenario, we would be supportive of value stocks in equities and US investment grade and US high yield in fixed income. In the area of alternatives, private equity, real estate equity, and collateralised loan obligations (CLO) equity could prove favourable.</li></ul><h3 data-block-key="7gcfr">Downside Scenario </h3>This is based on geopolitical breakdown, where US trade policy triggers reciprocal tariffs from other nations, and limited deals are negotiated. There could be a significant rupture of relations between the US and China.<ul><li data-block-key="gpdu">The US would likely enter a recession: Global growth could experience a significant slowdown, while tariffs elsewhere push up prices outside of the US. Geopolitical tensions could escalate further with imports to the US falling significantly.</li><li data-block-key="a0ba3">We would favour non-US assets. In equities, we would favour the defensive area, especially non-US utilities and telecoms. For fixed income, we see potential in non-US sovereign debt, while in alternatives, distressed debt and special situations offer attractive entry points.  Hedged strategies and gold are also preferable.</li><li data-block-key="dcnlk">Gold is seen as a &#x27;safe haven&#x27;. Although gold can be volatile, central banks have been adding to their gold reserves as they seek to reduce their reliance on US dollar assets. We see little reason to think central bank demand for gold fades materially.  Physical demand for gold in the US and China has been strong, too, and more recently, ETF demand has also improved. We believe it could provide diversification benefits to portfolios.</li></ul><hr/>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco Insight - 2025 Midyear Investment Outlook: The Global Reset

<h2 data-block-key="tembo">We see several reasons why last year’s strong performance of Asian credit may continue over the rest of 2025.</h2><h4 data-block-key="9o2hb">Key takeaways</h4><ul><li data-block-key="182lp">Most Asian economies are better positioned to weather trade tensions imposed by the US administration than they were during President Trump’s first term in office, thanks to more diversified trade partners and stronger macro fundamentals.</li><li data-block-key="aeeuc">We think Asian credit presents a compelling investment opportunity for global investors looking for diversified returns, with particularly attractive return potential in high yield bonds.</li><li data-block-key="8j3oo">We continue to believe Asia has entered a multi-year virtuous cycle that will lead to lower foreign exchange volatility and significant repricing of local bonds and credits.</li></ul>The Year of the Dragon, which ended in February, turned out to be a strong year for Asian fixed income. Supporting factors included good export performance from China and a surge in tech and semiconductor exports from countries such as Korea, Taiwan and Malaysia. Several southeast Asian economies saw healthy domestic demand growth, as well as India, which completed elections smoothly.Even frontier countries, such as Mongolia, delivered strong growth, while Pakistan and Sri Lanka made significant progress towards debt restructuring or liability management. Corporate earnings across the region were solid while China’s step-up in policy support significantly reduced tail risks in the system. As a result, sub-sectors within Asian fixed income outperformed their respective peers in other fixed income markets (Exhibit 1).<h4 data-block-key="4fgt5">Exhibit 1: Asian fixed income performed strongly in 2024</h4><img class="fullwidth" src="/media/images/exhitbit-1-en.2e16d0ba.fill-1368x704.png" alt="exhitbit-1-en" />Source: Bloomberg; Allianz Global Investors, as at 31 December 2024. Abbreviations include: high yield (HY), emerging markets (EM), investment grade (IG), local currency (LCY).So far this year, amid a period of elevated market volatility driven by US tariff policies, Asian fixed income markets have once again demonstrated their resilience. While the market consensus seems to perceive Asia as bearing the brunt of US reciprocal tariffs, the defensive quality of Asian credit continued to shine through, with Asian credit spreads outperforming US and emerging market peers (Exhibit 2).<h4 data-block-key="6tr8p">Exhibit 2: Asian credit shows continued resilience</h4><img class="fullwidth" src="/media/images/exhitbit-2-en.2e16d0ba.fill-914x559.png" alt="exhitbit-2-en" />Source: Bloomberg, Allianz Global Investors, as of 11 April 2025. Asia Investment Grade (IG) and Asia High Yield (HY) represented by J.P. Morgan Asia Credit Index. US Investment Grade (IG) and Euro IG represented by ICE BofA Corporate index, US and Euro HY represented by ICE BofA HY index, Glbl Emerging Market (EM) USD Sovereigns represented by JP. Morgan EMBI, Glbl EM USD Corporates represented by JP. Morgan CEMBI index. The information above is provided only for illustrative purposes, it should not be considered a recommendation to purchase or sell any particular security or strategy or an investment advice. Past performance, or any prediction, projection or forecast, is not indicative of future performance.Notably, issuers in China – seemingly at the epicentre of geopolitical tensions – outperformed Asian and US peers in the year to mid-April. Chinese US dollar-denominated high yield has, in fact, been the best-performing high yield market compared with its peers in other regions.1Can this outperformance continue? US growth remains reasonably resilient, and recent high-frequency data in China has looked a little stronger as the country starts to roll out policy support. Indeed, regional growth data has largely picked up in recent months. With inflation under control, current accounts doing well, and foreign currency reserves being accumulated, some central banks in Asia have started cutting rates.There are headwinds – notably continued uncertainties over US tariff policies – but, on balance, we think it likely that Asia can still lead global growth, continuing the trend seen in recent years (Exhibit 3). We see three reasons why Asian fixed income should continue to outperform in 2025.<h4 data-block-key="85ovj">Exhibit 3: Asia’s share of global GDP continues to rise</h4><img class="fullwidth" src="/media/images/exhitbit-3-en.2e16d0ba.fill-1375x729.png" alt="exhitbit-3-en" />Source: International Monetary Fund, Allianz Global Investors, as at 31 October 2024.<hr/><h4 data-block-key="a2hkb">1. Asian countries are better positioned for Trump 2.0</h4>The start of the 2025 brought a fairly resilient US economy and stabilising China growth, as the latter starts to roll out policy support. Conventional wisdom for Asia states that when both China and the US are doing reasonably well, Asian countries benefit too. In particular, if both countries embrace looser monetary and fiscal policies, it usually creates a supportive macro backdrop for Asian economies and markets.Nonetheless, the re-election of Donald Trump to the White House brings uncertainty – notably on the impact of tariffs imposed on US imports. How much has Asia or China to fear from the second Trump administration?On a positive note, most Asian countries are better positioned this time around. The region has grown strongly since the last trade war and inflation is more manageable in Asia than in most OECD countries. Barring a few exceptions, such as Vietnam and Thailand, most Asian countries have diversified their trade away from the US and other traditional partners – thanks to the structural improvement of purchasing power within the region.For example, the US accounted for 15% of China’s exports in 2024 – down from a peak of about 19% in 2018. Moreover, China has moved up the export value chain and become more technologically self-reliant. While China continues to export low-margin goods to the US, such as branded shoes, garments and iPhone assembly, it also exports cars and trains to Southeast Asia and Latin America, and power plants to Central Asia and the Middle East.This means that from the vantage point of China – and Asia as a whole – the 2025 version of the Trump threat may not look as unsettling as the 2017 version.That said, the range of possible trade policies in Trump’s second term is wide, and bets on any particular outcome are speculative. We like markets that are less correlated to the US and the rest of the OECD. These include China, India and the Philippines, where central banks are more willing and capable to make decisions driven by domestic factors rather than by what the US Federal Reserve may do.<h4 data-block-key="4r0h9">2. Asia high yield can continue to outperform</h4>Asia’s credit cycle remains largely in the favourable parts of the cycle. The latest corporate earnings have shown stable-to-improving profitability, helping to bring down debt levels across most sectors. We think the solid fundamental backdrop will continue to underpin relatively low spread volatility, leading to potentially good risk-adjusted returns for the broader Asian credit market.On high-yield credit specifically, we expect another strong rebound in 2025 as the default rate continues to trend down following recent spikes (see Exhibit 4).<h4 data-block-key="fpqvc">Exhibit 4: Asian high yield defaults are on a downward trend</h4><img class="fullwidth" src="/media/images/exhitbit-4-en.2e16d0ba.fill-913x488.png" alt="exhitbit-4-en" />Source: BofA Research, Bloomberg, Allianz Global Investors, as at 31 March 2025.Just like other high-yield markets that have experienced prolonged market stress, the Asian high-yield market now is much more diversified structurally, while remaining attractive compared with other global high-yield markets in terms of yields. Meanwhile, we believe the wide dispersion in valuations across sectors provides opportunities to add value through active management.To take one sector that has come under pressure – Chinese real estate – we observe that new construction starts dropped to a 20-year low in 2024. This should lead to limited new supply in the next 12-18 month while demand starts to stabilise. Developers that are still standing have weathered a storm and should come out much stronger – in terms of operations, brand name, market share and capital structure.Overall, we think the Asian high-yield market offers good opportunities for global investors seeking diversified returns.<h4 data-block-key="3gmdm">3. Asia offers diversification in a multipolar world</h4>The world has changed since 2016, when President Trump was first elected. A significant shift is the move towards a multipolar world, where power is increasingly distributed across multiple centres. Seen against this backdrop, the “US exceptionalism” narrative, which assumes Mr. Trump can use tariffs to impose pain on the rest of the world without suffering any significant cost to the US, seems unrealistic.We believe Asia is well-positioned to benefit as the world shifts toward a more multipolar order. Deepening regional trade, economic and financial integration reinforce the region’s structural strengths – favourable demographics, resilient economic fundamentals, with relatively stable, reform-minded leadership – all of which underpin Asia’s relative growth resilience. We believe that this is a multi-year virtuous cycle that is set to reshape Asia’s market dynamics, and drive a sustained decline in currency volatility, which should eventually lead to a structural repricing of bonds and credit assets.<h4 data-block-key="7e5lb">Exhibit 5: Asian high yield bonds offer attractive yields relative to other high yield markets</h4><img class="fullwidth" src="/media/images/exhitbit-5-en.2e16d0ba.fill-912x490.png" alt="exhitbit-5-en" />Source: J.P. Morgan, Bank of America, Allianz Global Investors, as at 25 April 2025.As we navigate ongoing secular shifts and the accompanying macro uncertainty, global investors are increasingly seeking to strengthen portfolio resilience through diversification. With lower beta and correlation relative to other fixed income markets, we believe Asian credit stands out as a compelling source of diversified returns in 2025.1 Source: Bloomberg data as at 15 April 2025.<hr/>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz Insight: Can Asian fixed income continue to outperform this year?

<h2 data-block-key="tembo">Year-to-date Asset Performance Review (as of 2 May 2025)</h2><img class="center" src="/media/images/Market_Buzz_EN_20250513.2e16d0ba.fill-642x492.png" alt="Market_Buzz_EN_20250513" />Past performance is not a reliable indicator of current or future results. Indexes are unmanaged and do not account for fees. It is not possible to invest directly in an index. Sources: BlackRock Investment Institute, with data from LSEG Datastream as of May 2, 2025. Notes: The two ends of the bars show the lowest and highest returns at any point year to date, and the dots represent current year-to-date returns. Emerging market (EM), high yield and global corporate investment grade (IG) returns are denominated in U.S. dollars, and the rest in local currencies. Indexes or prices used are: spot Brent crude, ICE U.S. Dollar Index (DXY), spot gold, MSCI Emerging Markets Index, MSCI Europe Index, LSEG Datastream 10-year benchmark government bond index (U.S., Germany and Italy), Bank of America Merrill Lynch Global High Yield Index, J.P. Morgan EMBI Index, Bank of America Merrill Lynch Global Broad Corporate Index and MSCI USA Index.<h2 data-block-key="be1dd">Big calls of Asset Class views</h2>Our highest conviction views on six- to 12-month (tactical) and over five-year (strategic) horizons (as of May 2025)Tactical<img class="center" src="/media/images/EN_Table_1_20250517.2e16d0ba.fill-2244x816.png" alt="EN_Table_1_20250517" />Strategic<img class="center" src="/media/images/EN_Table_2_20250513.2e16d0ba.fill-2313x913.png" alt="EN_Table_2_20250513" />Note: Views are from a U.S. dollar perspective, May 2025. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any particular funds, strategy or security. For more details please refer to www.blackrock.com/hk/en/global-weekly-commentary?switchLocale=Y#asset-class-views.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz Insight: House View Q1 2025 - Fresh thinking

BlackRock: Asset Class views (as of May 2025)

After a brilliant start to the new year for European stock markets, culminating in a year-to-date performance of almost +12% at the beginning of March, the US announcement of higher and more extensive import tariffs than expected sent global markets into correction territory.<h2 data-block-key="9o2hb">Key outlook takeaways</h2><ul><li data-block-key="51dlb">Significantly harsher than expected tariffs from the new US administration have derailed a 2.5 year bull market for European equities as investors price in the chances of a recession.</li><li data-block-key="6mr6t">Despite the pause in “reciprocal” tariffs, we expect elevated volatility to continue, as uncertainties remain high, and the remaining tariffs will have implications for corporates and the broader economy.</li><li data-block-key="fdhph">We recommend maintaining a defensive bias and caution regarding sectors that are likely to suffer from persistently high tariffs.</li><li data-block-key="1j9vl">Our core principles remain as important as ever: long-term thinking, a focus on companies’ intrinsic value, and the proper management of portfolio risks.</li></ul>While further price losses cannot be ruled out in the event of a global recession, we believe the significant recent setback has led to more attractive opportunities for medium- to long-term investors, particularly in Europe. A Europe that – under increased external pressure – acts together and concentrates on developing its strengths, supported by a new business friendly German government with a mandate for a significant increase in public spending, should not be underestimated. President Trump’s announcement of a pause in his steep “reciprocal” tariffs on almost 100 countries (while increasing tariffs on China to 145%) has provided the equity markets with much-needed relief, but we expect volatility to remain high as significant, growth-inhibiting tariffs remain in place. Meanwhile, “deals” with trading partners have yet to be concluded and uncertainty on the corporate side is likely to persist for the time being, in view of the erratic decisions taken by the US administration to date.<h2 data-block-key="6tr8p">Market nose-dive</h2>President Trump’s harsh implementation of his ideas on tariffs has derailed the European equity market, which had not experienced a double-digit setback for around 2.5 years – MSCI Europe saw a total return of 55% since Sep 2022, before the latest correction. With a 17%decline since this year’s high in early March, followed by a 5% rebound driven by President Trump’s U-turn on tariffs on 9 April, MSCI Europe and the S&amp;P 500 have both lost more than their gains since the US election. Initial enthusiasm for business-friendly political measures gave way to increasing uncertainty and concerns about the impact on growth and inflation of measures such as tariffs, the dismissal of civil servants, and the mass deportation of illegal immigrants.While European corporate earnings have so far held at decent levels (see chart below), the market has started to price in increased recession probabilities for the US and Europe under scenarios where significant US tariffs and retaliatory tariffs are being maintained, coupled with potentially meaningfully higher inflation in the US. Off a relatively reasonable valuation level compared to the US at the beginning of March of 14.8x 12 month forward earnings, European equities have derated to 12.6x, slightly below their 20-year average of 13.0x. Similar to its US counterpart VIX, implied volatility for the Euro Stoxx 50 spiked from 21 to 53 (currently ~34) during the week of the US tariff announcement on April 2. Technical indicators like the relative strength index (RSI) are now clearly in oversold territory for Europe and the US, while typical investor sentiment indicators like the AAII US Investor Survey are also at bearish levels. These indicators point to very negative sentiment and may be considered an entry point for investors who follow the philosophy of Warren Buffet: “Be fearful when others are greedy and greedy when others are fearful.”<h4 data-block-key="84l6v">Chart 1: MSCI Europe and S&amp;P 500 performance since US presidential election (indexed to 100, local currencies)</h4><img class="center" src="/media/images/market_buzz_506_chart1_en.2e16d0ba.fill-642x251.png" alt="market buzz 506_chart1_en" />Source: Bloomberg as of 11 April 2025. Past performance is not indicative of future performanceChart 2: Economic uncertainty index and implied volatility – Euro Stoxx 50<img class="center" src="/media/images/market_buzz_506_chart2_en.2e16d0ba.fill-642x245.png" alt="market buzz 506_chart2_en" />Source: Bloomberg as of 11 April 2025<h2 data-block-key="96cb9">Have we reached the bottom?</h2>While one might read from the above-mentioned indicators that the market might not be far from the bottom, for now this is only likely for the very short term. Whether markets will see a V-shaped recovery or take a further hit depends on developments on the tariff front and whether or nor a recession will eventually ensue (see below for more on tariffs). Current consensus earnings forecasts, which stand at 6% EPS growth for MSCI Europe in 2025 (cf.: S&amp;P 500: +11%), will almost certainly have to come down.The upcoming 1Q25 reporting season will be watched eagerly to get further direction, but with visibility for companies probably as limited as for anybody else right now, any guidance is unlikely to be very meaningful or particularly positive. We thus believe it is unlikely that the reporting season will be a positive catalyst. While definitely not our base, we note that in a typical recession, earnings forecasts are revised down by 20%-30% from peak-to-trough, hence the current market valuation at ~3% below long-term average does not yet incorporate a recession.Chart 3: MSCI Europe 12m forward consensus EPS<img class="center" src="/media/images/market_buzz_506_chart3.2e16d0ba.fill-642x244.png" alt="market buzz 506_chart3" /><h2 data-block-key="4tgc4">Unprecedented tariff situation</h2>Despite President Trump’s U-turn, the effects from tariffs continue to concern, on top of which comes the fact that the situation remains completely unpredictable. Even under this new scenario, the weighted average tariff into the US will still increase significantly from 2.5% to 18%, given the prevailing 10% universal tariff and 145% on China. Also, tariffs on autos are still in place, and tariffs on pharma have yet to come.While many observers and investors initially assumed that Trump would use the tariffs as a negotiating tactic, this view has increasingly given way to the realization that this is not the case and that more fundamental economic and political goals are being pursued. This makes simply “negotiating away” with “deals” between trade partners a less likely outcome. The extent of the long-term implications for the global economic system can hardly be estimated as yet, but on balance they are certainly negative for the global economy and therefore represent a potential longer-term negative factor for equities.On a more positive note, the change in course means the Trump administration is not as resistant to market pain as it seemed for a while. The strong decline in US equities and a spike in US treasury yields apparently couldn’t be ignored any longer. The planned announcement of tax cuts – if approved by Congress – could provide a positive stimulus in the coming weeks, though mounting concerns about US debt sustainability suggest overly generous tax cuts could also be taken negatively by the market.<h2 data-block-key="9fb3j">How to invest?</h2>We believe that equity market volatility is likely to remain elevated in the coming months. Significant growth-inhibiting tariffs remain in place, and are not yet reflected in consensus earnings forecasts, “deals” with trading partners have yet to be concluded, and uncertainty on the corporate side is likely to persist for the time being, leading to temporarily lower investments in view of the erratic decisions taken by the US administration to date. In periods of such elevated uncertainty, we recommend positioning portfolios with a defensive and quality bias and an underweight in clear losers from first and second order effects from tariffs (e.g. automotive or apparel &amp; footwear). Corporates are impacted by the same uncertainty as investors. Without a reliable and predictable framework, there is limited appetite to invest or re-allocate production. This uncertainty will have a negative impact for growth and the earnings outlook. In these times, it is also good to go back to the basic principles of investing: managing portfolio risks properly, thinking long-term, and focusing on the intrinsic value of companies.Despite risks from tariffs, we favour European over US equities. Europe’s growth gap to the US is likely to narrow, higher public investment spending in Europe will support growth, lower inflation risks in the Eurozone allow the ECB to ease more quickly than the Fed, and Europe’s valuation discount to the US remains well below the long-term.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz: Navigating Major Uncertainties (European Equities Outlook Q2 2025)

<h2 data-block-key="tembo">Heads spinning, markets rotating</h2><ul><li data-block-key="51dlb">Early 2025 has brought a switch in sentiment. Facing stark geopolitical realities, Europe is adjusting fiscal policy in a way that should drive structural growth. This pivot – a major moment for economics and politics – has sparked a broad-based European rally.</li><li data-block-key="7jvhe">We think the rotation into European markets has, so far, barely made a dent in large, established US overweight positions and it is not too late to participate.</li><li data-block-key="3vk0l">In the US, tariffs and uncertainty about the economy and government policy are weighing on growth. Some actions of the new administration could undermine the US as a safe haven.</li><li data-block-key="7rvle">Risks in this environment include higher US inflation, slowing growth momentum globally, and the potential for a full-blown and protracted trade war. But we consider it a compelling period for active management.</li><li data-block-key="4jvqc">We are cautiously optimistic on select equity markets in an environment where &quot;air pockets&quot; of temporary turbulence are likely. Well-anchored portfolios across geographies are key. Consider a long Europe position as well as opportunities in China and India.</li><li data-block-key="8rlhd">This shift in sentiment has implications for sovereign bonds. Our highest conviction is in UK Gilts. Overall, we are slightly long duration in the UK and euro area. We think investment grade spreads are supported by carry and momentum.</li></ul><h2 data-block-key="1hltp">Asset class convictions</h2>Equities<ul><li data-block-key="hbsd">Overall, we have a constructive outlook on equities while being tactical amid the risk of &quot;air pockets&quot;. We think the rally in European equities has further to go but, given the market volatility and uncertainty, we would also look to other global markets as part of well-anchored portfolios across geographies.</li><li data-block-key="7fn7k">The reassertion of “European sovereignty” – and increased spending commitments – could boost several sectors. These will likely include cybersecurity and AI as well as defence.</li><li data-block-key="fgie3">European investors are currently underweight construction. But rapid growth in global data centres is structurally positive for the sector; it could also benefit from any post-ceasefire reconstruction in Ukraine.</li><li data-block-key="c83l6">With a USD 4 trillion market capitalisation, India offers a high sectoral diversification compared with other emerging markets. Valuations may offer a compelling margin of safety.</li><li data-block-key="dfv8">We think China is attractively valued and getting noticed for its technology focus (eg, embodied AI and humanoid robots). Given the potentially weaker trade outlook for China this year, the government is set to promote consumption that should support growth.</li></ul>Multi-asset<ul><li data-block-key="dooe8">We remain selectively constructive on certain equity markets as headwinds grow and tariffs weigh on market sentiment. Having cut our US exposure, European equities are our top pick, buoyed by momentum, attractive valuations, increased fiscal spending and improving sentiment.</li><li data-block-key="575t1">Weaker inflation in Europe than in the US leads us to favour European government bonds over US Treasuries. Although the scale of planned fiscal packages is still be finalised, we expect higher yields to persist in an environment of increased volatility and a decoupling of major yield curves.</li><li data-block-key="cpnar">Our preferred currency is the Japanese yen. We think conditions for the currency are supported by the Bank of Japan’s policy stance – it is late in its cycle of interest rate rises. The yen could regain its safe haven status, especially as Japanese local bonds become increasingly attractive.</li><li data-block-key="61epn">In commodities, gold remains our highest conviction call, driven by robust momentum and its role as a hedge against geopolitical risks. In our view, gold remains a useful diversifier in multi-asset portfolios.</li></ul>Fixed Income<ul><li data-block-key="e00kl">We expect the yield curve to steepen in Europe, reflecting big defence-related spending plans in Germany and elsewhere that will take time to implement. Across the Atlantic, fears of a slowdown also point to US yield curve steepening. In this environment, we prefer to trade tactically around structural positions.</li><li data-block-key="fa2u7">The outlook for Gilts is promising based on valuations and market expectations of central bank policy. In the UK, unlike in the euro area or Canada, likely future rate cuts are not fully priced in. On recent Gilts outperformance we took partial profit on this theme.</li><li data-block-key="c9v26">Consider going long on the Japanese yen. The Bank of Japan is under ongoing pressure to raise rates to more “normal” levels to tackle inflation. For that reason, expect Japan’s yield curve to flatten.</li><li data-block-key="50cum">Don’t chase beta in credit markets. With interest rate volatility expected, the environment calls for a selective approach involving bottom-up and single-credit analysis.</li><li data-block-key="h9g3">Emerging markets are showing resilience in the face of market volatility, indicating value in a selective approach to emerging market debt.</li></ul>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz 2025 Q2’s House View: Vibe shift

<h2 data-block-key="tembo">Is it worth continuing to invest in a money market fund💰 with an annualized return of 5️⃣%1🤔❓</h2>Since 2022, the Federal Reserve has raised interest rates continuously📈, and the FED rate has peaked and remained high2. Money market funds have become one of the most direct and fast-earning investment products🤩:<ol><li data-block-key="bn6nt">Relatively attractive returns💰: As of 31 December 2024, the average 1-year return of USD Money Market Funds was 5.06%, and the average 1-year return of HKD Money Market Funds was 4.07%3;</li><li data-block-key="7g79a">Investment subscription remains popular🎉: according to website of Federal Bank of St Louis, as of 30 September 2024, the global AUM of USD Money Market Fund exceeded USD 6.8 trillion, which observed an 80% increase in five years4; a report from Hong Kong Investment Funds Association also indicates that, the AUM of Money Market Funds registered in Hong Kong surged nearly 4 times from USD 8,438 million at the end of 2020 to USD 39,918 million in September 20245.</li></ol>The prospect of a rate cut temporarily remains uncertain. Is it worth continuing investment in Money Market Funds❓ Any tips to pick from various Money Market Funds in the market❓Chart 1: United States Fed Funds Interest Rate (since 2020)<img class="fullwidth" src="/media/images/MMF_IMG1.2e16d0ba.fill-742x402.png" alt="MMF_IMG1.png" />Source: tradingeconomics.com/united-states/interest-rateChart 2: Asset under management of USD Money Market funds (since 2020)<img class="fullwidth" src="/media/images/MMF_IMG2.2e16d0ba.fill-1324x763.png" alt="MMF_IMG2.png" />Source: fred.stlouisfed.org<h2 data-block-key="dukfq">🔶How do Money Market Funds earn return❓</h2>Money Market Funds usually invest in financial products with short maturities, such as government bonds, corporate short-term bonds, bank deposits, bills and other fixed income products.Take USD Money Market Funds as an example, the interest rate of closely follows the FED interest rate in principle. The FED interest rate hike means that the interest on deposits and certificates of deposit in US banks will rise, meanwhile potentially more funding inflows shift from long-term fixed-income assets to short-term fixed-income assets, hence investment in bank deposits and certificates of deposit in US dollar Money Market Funds will &quot;rise&quot; accordingly, which makes it one of the most directly benefiting income products from interest rate hikes.Chart 3: Impact of FED interest rate hike on Money Market Funds6<img class="fullwidth" src="/media/images/MMF_IMG3_EN.2e16d0ba.fill-1251x725.png" alt="MMF_IMG3_EN.png" />Source: tradingeconomics.com/united-states/interest-rate, Morningstar<h2 data-block-key="f19cm">🔶How long may the return of Money Market Fund last during the rate cut cycle❓ Referring to the data:</h2><ol><li data-block-key="aphue">The latest US employment data (as of December 2024) exceeded expectations: non-farm employment was 256,000, far exceeding the expected 160,000. The unemployment rate was originally expected to remain at 4.2%, but it dropped to 4.1%. This data supports the expectation that the Federal Reserve may slow down the pace of interest rate cuts. As of 31 January 2025, the Federal Reserve Interest Rate Observation Tool (CME) predicts that the Fed interest rate will fall at the level of 4.00%-4.25% with probability of more than 50% in early November 2025 (see Chart 4).</li><li data-block-key="d8see">Review of the interest rate cut cycle after 2000: In the early stage of the interest rate cut, the AUM of USD Money Market Fund remained for a long time. Until FED interest rate cut cycle entered the second half, funds flowed out of Money Market Fund (see Chart 5).</li><li data-block-key="2je5q">US has experienced seven interest rate cut cycles in history, and the average time of the interest rate cut cycle is as long as 26 months.</li></ol>Chart 4: Federal Reserve Interest Rate Monitoring Tool (CME) predicts FED interest rates (2025-2026)<img class="fullwidth" src="/media/images/MMF_IMG4.2e16d0ba.fill-2364x1781.png" alt="MMF_IMG4.png" />Source: cmegroup.com/markets/interest-rates/cme-fedwatch-tool.htmlChart 5: Comparison of FED rate changes and the AUM of USD Money Market Fund (since 2000)<img class="fullwidth" src="/media/images/MMF_IMG5.2e16d0ba.fill-1289x678.png" alt="MMF_IMG5.png" />Source: fred.stlouisfed.org<h2 data-block-key="972ue">🔶There are so many money market funds on the market. How should I pick one❓</h2><ol><li data-block-key="aks8a">When choosing a Fund House, pay attention to branding, strength, and global investment experience.</li><li data-block-key="3f0nm">Money Market Fund’s asset under management (AUM): Moderately-sized Money Market Funds have obvious advantages in balancing liquidity as well as flexibility in income generation;</li><li data-block-key="cusfu">Fund’s fees and charges: Be aware of subscription fees, management fees, etc.</li></ol><h2 data-block-key="6974l">🔶How to search for Money Market Funds in WeLab Bank APP❓ </h2>1.Log on to WeLab Bank APP and click ‘Featured Fund’<img class="fullwidth" src="/media/images/MMFScreen_S_EN1.2e16d0ba.fill-300x597.png" alt="MMFScreen_S_EN1.png" />2.Select ‘Money Market’<img class="fullwidth" src="/media/images/MMFScreen_S_EN2.2e16d0ba.fill-300x597.png" alt="MMFScreen_S_EN2.png" />3.Money Market Fund List<img class="fullwidth" src="/media/images/MMFScreen_S_EN3.2e16d0ba.fill-300x597.png" alt="MMFScreen_S_EN3.png" />4.Select one of the funds to view the details<img class="fullwidth" src="/media/images/MMFScreen_S_EN4.2e16d0ba.fill-300x597.png" alt="MMFScreen_S_EN4.png" />Remark:<ol><li data-block-key="av3sc">Take USD Money Market Funds as example, data as of 31 December 2024, in Hong Kong retail fund market, we calculate the average of the returns of all USD Money Market Funds in the past 1 Information provided by the Fund House(s) and Morningstar Asia Limited.</li><li data-block-key="3n6d">Source: tradingeconomics.com/united-states/interest-rate</li><li data-block-key="dmm78">Regarding HKD Money Market Funds, data as of 31 December 2024, we calculate the average of the returns of all HKD Money Market Funds in the past 1 year in the Hong Kong retail fund market. Information provided by the fund company, Morningstar Asia Limited.</li><li data-block-key="982l8">Source: fred.stlouisfed.org</li><li data-block-key="7n0ci">Source: hkifa.org.hk/zh-hant/retail-funds/fund-statistics/</li><li data-block-key="7v5t1">Source of information: See remarks 1,2</li><li data-block-key="dkpib">Source: www.visualcapitalist.com/sp/what-history-reveals-about-interest-rate-cuts/</li></ol>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Is it worth continuing to invest in a money market fund?

Is it worth continuing to invest in Money Market Funds?

<h2 data-block-key="tembo">Our view of global markets</h2>The “Trump effect”<ul><li data-block-key="51dlb">Donald Trump’s return to the White House is set to be a game-changer for the US economy and markets. We think the likelihood of more fiscal stimulus and deregulation may drive growth and provide a tail wind fo risk assets, at least in the short term.</li><li data-block-key="cf4ig">We still consider a “soft landing” as the most likely outcome for the US economy, where inflation slows and recession is avoided. But we see an increasing risk of a “no landing” where growth reaccelerates and inflation takes off again. This would likely have implications for US monetary policy.</li><li data-block-key="37tvt">Globally, the second Trump term comes as economies diverge in growth, inflation and interest rates. We see this divergence widening in 2025.</li><li data-block-key="qm8r">Fresh thinking and broader diversification are advisable. Diversification might include private market assets, particularly if rising inflation reverses the recent decorrelation between stocks and bonds.</li><li data-block-key="654n0">Given the Trump effect, we are positive on US equities but are conscious of high valuations. In fixed income, we like Europe over the US, as anticipated European rate cuts are more likely to remain intact. The sequencing of the policies of the incoming US administration will be key in determining the trajectory of financial markets in 2025.</li><li data-block-key="3vt98">From tariffs to political paralysis in the euro zone, geopolitical risk will loom large but unevenly across markets, requiring a deft approach to managing a portfolio.</li></ul>Trade wars ahead?​Higher tariffs proposed by Donald Trump against China, Mexico and Canada and other major trading partners would shake up trade and risk a more protectionist global landscape. If fully implemented, they could prompt retaliation, threatening the flow of everything from batteries to electric vehicles and raising prices for consumers and businesses, potentially undermining growth.<img class="fullwidth" src="/media/images/MBuzz_0127_EN.2e16d0ba.fill-1257x720.png" alt="MBuzz_0127_EN.PNG" />Source: Allianz Global Investors Global Economics &amp; Strategy, Bloomberg, United States International Trade Commission (data as at 27 November 2024). Note: chart assumes tariff rates will rise from current levels to those indicated by Mr Trump.<h2 data-block-key="be1dd">Asset class convictions</h2>Equities<ul><li data-block-key="dooe8">Overall, we remain constructive but expect a pick-up in volatility as more detail emerges of how new US policy – particularly on immigration and tariffs – might impact inflation and global supply chains. So, we continue to favour volatility-absorbing strategies in the multi-factor space to anchor portfolios.</li><li data-block-key="b57ni">We still like the US and remain keen on technology stocks at the right valuation given their innovation and earnings profile. A broadening in technology sector performance is likely in 2025.</li><li data-block-key="ai3jf">European valuations are favourable, and interest rate cuts could be more pronounced than in the US, supporting selective exposure to companies with global earnings resilience.</li><li data-block-key="76mke">India’s young population is fuelling an “aspiration economy” and its relatively neutral position versus both the US and China may give its exporters an edge in a more protectionist world.</li><li data-block-key="1qqfr">Despite negative market sentiment, we continue to favour some China exposure in global portfolios. Support for its domestic economy – and recent reform of its private pension programme – could boost the market beyond current expectations.</li></ul>Fixed Income<ul><li data-block-key="e00kl">We favour European bond markets relative to the US. While weaker growth in Europe will likely keep rate cuts intact, the Fed could scale back rate cuts in the US in H1 as the Trump agenda drives domestic growth. We maintain a curve steepening bias in both markets but have tactically taken some profits (or reduced our exposure).</li><li data-block-key="9578e">Think about active portfolio construction in fixed income. Outright duration calls should be balanced with relative value trades across regions, currencies and curve positioning – amid greater divergence across economies.</li><li data-block-key="8hial">We think UK gilts are a good place to be as the market is underpricing the scope for rate cuts.</li><li data-block-key="4bmb2">In corporate credit, we think valuations of investment grade bonds are more attractive in Europe than in the US (and prefer IG over high yield). But in an unpredictable environment, this asset class calls for active management and diversification.</li><li data-block-key="8u8ua">With uncertainty and potential currency volatility ahead, we think investors should position themselves in the middle to lower end of risk budgets, so they have room to react.</li></ul>Multi Asset<ul><li data-block-key="9sp9h">While the S&amp;P 500 remains our favoured equity market, we have softened our stance amid question marks over the longer-term outlook – we want to be prepared for setbacks. US small caps should thrive in a Trump economy.</li><li data-block-key="2a7ms">Japan is a favoured equity market outside the US as it could be less vulnerable to tariff attacks than many other Asian countries, while also benefiting from falling energy prices and solid earnings revisions.</li><li data-block-key="6e6cd">We await any impact that new US policy has on the dollar. While we remain constructive on the greenback for the moment, any dollar weakening might be a chance to reallocate funds to asset classes that came under pressure around the time of the US election such as EM debt. We are increasingly positive on the yen.</li><li data-block-key="boh59">Gold is back as a useful diversifier in multi-asset portfolios. Since the US elections, the downward pressure on the gold price exerted by a strong US dollar and high real interest rates has been counterbalanced by demand from central banks and from retail investors in China and India.</li><li data-block-key="7o8o9">We think now is a good time for assets uncorrelated with the rest of the market – such as carbon credits or volatility as an asset class in its own right – that can generate value while actively managing risk in portfolios.</li></ul>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! <hr/>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

We recently revised up our forecast for the US economy on the basis that President-elect Trump will ultimately pursue a pro-growth policy mix when he enters office on 20 January. However, there is a clear risk that we are far too sanguine, and that Trump will do exactly what he has promised.This is something we have modelled in our “Aggressive Trump” scenario, where we make four key assumptions. Firstly, a tariff of 60% is applied to Chinese goods, with a 10-20% tariff on the rest of the world. Secondly, border controls significantly limit immigration, with one million undocumented migrants deported annually. In addition, fiscal loosening of US$10 trillion over the next decade, mainly through lower taxes for individuals and businesses. Lastly, widespread and rapid deregulation, particularly of the fossil fuel and financial sectors.Our work indicates that these factors would have a deflationary impact on the global economy relative to our baseline forecast. China would probably suffer the most from aggressive Trump policies, although they could prompt a large fiscal stimulus to boost domestic demand.Disruptions to global trade and supply chains means that the hit to growth is more pronounced than in our “US Consumer Recession” scenario. But the downside to inflation is estimated to be more limited because of large fiscal stimulus, along with the tit-for-tat retaliation in tariffs and the depreciation of local currencies versus the US dollar.There are important distinctions to be made on the impact of an aggressive Trump policy mix on the US economy relative to the rest of the world. Weaker trade, a pause in investment decisions and a general shock to confidence would be likely to tip most economies towards recession and lead to aggressive interest rate cuts. But this mix would have more of a stagflationary impact for the US. In other words, while the US’s growth outlook is also diminished under an aggressive Trump scenario, slower growth would be accompanied by more, rather than less inflation.<h3 data-block-key="4i9mu">Constrained supply would leave the US mired in stagflation</h3>While an aggressive Trump may try to deliver large fiscal stimulus, stronger demand would quickly run into a deteriorating supply side of the US economy. Despite being partially absorbed by the stronger US dollar and profit margins, substantially higher tariffs would be likely to increase goods inflation.But the greater threat to inflation probably comes from a crackdown on immigration, along with mass deportations, if it leads to labour shortages that would ultimately result in higher wages and services inflation.Analysis by the Peterson Institute estimates that while an additional 10% import tariff might temporarily add about one percentage point to US inflation, mass deportations could quickly add more than three percentage points and take several years to normalise. GDP growth would probably slump in the first instance due to huge disruption, before receiving some boost from stimulus measures heading into 2026.Pew Research Center estimates, based on the American Community Survey, suggest approximately 8.3 million US workers in 2022 were unauthorised immigrants.In this scenario, we estimate that destruction of the supply side of the US economy would lower its potential rate of growth to around 1.5% per year. In other words, a more supply-constrained economy due to aggressive Trump policies would skew the composition of nominal growth away from real growth and more towards inflation.All of this would leave the Federal Reserve (Fed) in a bind. While other central banks slash interest rates in 2025, stagflation would leave the Fed unable to loosen policy, causing the US dollar to strengthen even further. That would be likely to draw intense criticism from the Trump administration, such that at the end of his term in May 2026 chair Jerome Powell would be replaced with someone more amenable to loosen monetary policy.Our modelling then assumes that in a bid to raise growth, US rates are cut to 3% by the end of 2026. That, along with gaping twin deficits, would finally cause the US dollar to roll over.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Schroders Perspective: What if Trump isn’t bluffing?

Schroders-Outlook-2025-Equities

Schroders Outlook 2025: Equities

Asia’s macroeconomic backdrop improved in 2024 and equity market performance in the region remained strong. Elections occurred in several major Asian countries during the early part of the year which have largely helped to create a stable economic environment. The US Federal Reserve also recently started their easing cycle as inflation is coming under control. Looking ahead to 2025, we expect domestic demand in the region to strengthen as the effects of earlier monetary tightening wane. We also think increased intra-regional trade driven by China&#x27;s economic recovery will enhance exports and consumption. We are focused on domestic drivers of the Asian market as an indicator of the region’s economic trends.Increasing certainty in Asia&#x27;s path toward monetary easingAsia has successfully reduced inflation and kept interest rates at a stable level more quickly than the rest of the world. The Philippines, Indonesia, Thailand, and Korea began their rate cutting cycles in Q3 2024. With the Federal Reserve now having started its easing cycle, Asian countries will have more room to lower interest rates in 2025, alleviating concerns about potential currency pressures.Stimulus package fuels China&#x27;s economic recoveryThe Chinese government recently announced a raft of stimulus measures aimed at stabilizing the stock market and property market. We believe these policies will help to create opportunities for future economic growth. Looking ahead, we have a positive outlook for China. We expect policy support to continue with more measures being implemented in the near term. We have already observed a positive impact from the September stimulus efforts including an uptick in manufacturing activity. We also expect China&#x27;s recovery to create opportunities for other Asian economies by enhancing intra-regional exports notably to ASEAN markets. We expect commodities and service exports, such as tourism and transportation, to benefit from this recovery.Domestic demand as a catalyst for structural growth in Asia🔹 IndiaIndia is projected to be the strongest growing major emerging market economy this year, fueled by rising consumer sentiment and increased spending. Retail sales have surged, particularly in discretionary categories, thanks to a large young population with rising disposable income. We believe the continuation of labor market reforms, increasing push for infrastructure development, and enhancements in education and workforce skills, all present significant opportunities for higher economic growth in 2025 and beyond.🔹 ASEANOur economic outlook for the ASEAN region remains robust and we are positive on Singapore, Malaysia, Indonesia, and the Philippines. The structural growth of ASEAN markets, characterized by young demographics and rising incomes, supports strong domestic consumption and investment. Foreign direct investment (FDI) inflows have surged from US $170 billion in 2016 to $220 billion in 2023.1 Looking ahead, we think the recovery of global trade and tourism will be a key growth driver. We believe countries like Singapore and Malaysia are well-positioned to benefit from increased FDI and export growth. International tourism within ASEAN is steadily recovering, nearing pre-COVID levels, and we expect this positive trend to continue.Structural dynamics of the AI tech cycle🔹 Taiwan and KoreaTaiwan and Korea are global leaders in semiconductor manufacturing. The rising demand for artificial intelligence (AI) technologies is expected to drive investments in advanced chip production and research and development, bolstering economic growth. We anticipate that the AI sector will continue to fuel strong earnings growth for these two markets. In Taiwan, earnings revisions are expected to remain positively biased due to strong structural growth in AI and a potential cyclical recovery in non-AI tech demand in 2025. In Korea, the tech-driven export recovery is maturing, and the domestic economic outlook is likely to improve given the start of the monetary easing cycle. We also expect the structural uptrend in AI to benefit Korea’s IT supply chain.🔹 Potential headwindsLooking ahead we will monitor several key factors that may impact the performance of Asian economies in 2025. First, we will keep an eye on retail and loan growth in the region. Second, we will scrutinize the policies being implemented by the Trump administration for their potential impact on Asian countries, particularly export-driven economies. Third, we will examine global demand as a reduction in demand could affect investor confidence in the region. Asian governments are actively implementing policies to foster growth and maintain stability. We believe the extent of China’s recovery will significantly benefit Asian markets. As China’s economic momentum accelerates, we expect the increase in demand for goods and services will stimulate growth in neighboring countries and lead to upward revisions in corporate earnings across the region.🔹 Risk-reward profile of Asian equities looks attractiveFrom a valuation perspective, Asian markets appear attractive, with Asia ex-Japan equities currently trading at a low forward 12-month price-to-earnings ratio of 13.1x, which is less than one standard deviation below the long-term average.2 In comparison to developed markets, Asia ex-Japan equities are trading at approximately a 39% discount.3 We are optimistic about the earnings growth potential of Asian corporations, with market consensus projecting double digit earnings per share growth in the coming year.4 This positive outlook suggests further upside for earnings and return on equity, driven by an improving economic environment in Asia.Figure 1 – Asia ex-Japan equities still trading at a discount to developed markets<img class="fullwidth" src="/media/images/MB_chart_EN.2e16d0ba.fill-1765x761.jpg" alt="MB_chart_EN.jpg" />Investment risksThe value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.When investing in less developed countries, you should be prepared to accept significantly large fluctuations in value.Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance.<hr/>Footnotes1 Southeast Asia: Foreign investments resilient despite global economic uncertainties, October 2024.2 Source: Factset, data as of October 2024.3 Ibid.4 Goldman Sachs, data as of 2 November 2024.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invescos-2025-Investment-Outlook-Asia-Equities

Invesco’s 2025 Investment Outlook – Asia Equities

As the market absorbs the US election result our team will be watching closely how policy changes of the new administration are likely to impact both US and non-US companies over the coming months.However, our approach remains consistent: building, from the bottom up, a strategy of high quality, cash generative, resilient businesses with enduring competitive advantages whose outlook is driven predominantly from within. Our investment cases are not reliant on a particular political or macro scenario playing out. Rather our focus is on businesses we are happy to own across the cycle, through different political regimes.A look back at long term history shows that there has not been a clear relationship between the make-up of the US government and subsequent returns of the US stock market. Over the four-year period following an election, the market has typically risen by a similar amount whether a Republican or Democratic president has been in charge as well as if either party has won a sweep or operated as part of a divided government.US domestic cyclicals and perceived deregulation beneficiaries such as banks rose in the immediate period following the result, with defensives and non-US stocks out of favour. However, the market will continue to assimilate the result over the coming days as well as reacting to more concrete policy announcements over the medium term.Given our long-term investment horizon and low turnover it is unlikely the US election will drive material changes in positioning. However, high profile news events such as these and any accompanying volatility or short-term knee-jerk reactions by the market can potentially provide an opportunity to go against the crowd and take advantage of valuation anomalies. We will remain on the look out for any such opportunities.From a policy perspective, during campaigning both parties had shown a commitment to spending but with a lack of detail on the specifics of economic policy. Equity investors will be paying particular attention to the new administration’s approach to tax and tariffs.The US trades at a significant premium to the rest of the world and the valuation gap is as extreme as it’s been in many decades. While the weighting to technology stocks explains some of the valuation differential, a closer look shows the premium to be broad based, with nine of the ten sectors in the US more expensive than their ex- US counterparts. Given our valuation discipline, we therefore can often find better opportunities in companies domiciled outside the US. But despite being domiciled outside of the US, many of the European and Asian companies we prefer generate significant proportions of their revenues in the US. In addition, many of the largest US technology companies pay little or no dividend, making them unsuitable for the strategy.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: US election insights - Global dividend strategy

<ul><li data-block-key="6urdt">Indian equities have been a strong outperformer in the broader EM in the recent years, with all sectors performed positively.</li><li data-block-key="cmpcr">Recently, Indian equity valuation has come down after market correction, partly because of profit taking, geopolitical dynamics in the Middle East, and the upcoming US presidential election.</li><li data-block-key="18qlp">From a valuation perspective, Indian equities (as represented by MSCI India) are currently trading below 1 standard deviation level of the past 5 years.1</li><li data-block-key="7jovn">Selected mid-cap stocks with strong fundamentals and better earnings visibility have also experienced corrections, resulting in more reasonable valuations compared to a few weeks ago.</li></ul>MSCI India Forward 1 year P/E<img class="fullwidth" src="/media/images/MB_11NOV_C_EN.2e16d0ba.fill-1278x623.jpg" alt="MB_11NOV_C_EN.jpg" />(Source: FactSet, 25 Oct 2024.)Given the long-term growth drivers remain intact, we expect valuation of Indian equities to remain within the range of the longer-term trend.Robust earnings growth<ul><li data-block-key="3idbr">The EPS growth of Indian companies is strong, and notably better than that of most developed economies and selected emerging markets such as Thailand, Indonesia, Brazil.</li><li data-block-key="d0ql7">Market consensus for MSCI India forecasts earnings growth of 15% to 16% in 2024 and 2025 respectively2, with mid-teen profit growth expected to be sustained in the coming years.</li><li data-block-key="euida">Currently it is the earnings season of the India market and so far as we see, the latest earnings announcements remain solid.</li></ul>Strong corporate fundamentals<ul><li data-block-key="eg25o">The Return on Equity (RoE) of MSCI India reached a 13-year high of 16.9% in FY 2024, indicating improved returns for investors.3</li><li data-block-key="el2s4">Indian companies are projected to achieve higher and more sustainable RoE going forward, having transitioned from low to mid-teens RoE in recent years.</li><li data-block-key="389bs">Over the past decade, Indian companies have effectively managed their balance sheets, maintaining under-leveraged positions that support participation in demand-driven growth.</li><li data-block-key="6mju9">The debt ratio for MSCI India is much better, as represented by total debt divided by total assets, has decreased from 28% in 2019 to 21.2% by Q3 2024.4</li><li data-block-key="2qj2n">Free cash flow relative to sales has also risen sharply and is currently above the long-term average. We anticipate that corporate balance sheets will continue to strengthen.</li></ul>Liquidity is supportive<ul><li data-block-key="bndkf">Liquidity remains strong in the Indian equity market, supported by robust domestic liquidity in addition to foreign institutional flows.</li><li data-block-key="f8290">This trend reflects the high confidence that the Indian public has in their economy and the market, with these positive structural flows expected to persist.</li></ul>Valuation has come down<ul><li data-block-key="5c8hh">Indian equity valuation is getting back to a more comfortable level.</li><li data-block-key="c4dhn">As investors, we believe the key will always be bottom-up stock selection.</li><li data-block-key="69c0p">There are always companies &amp; hidden gems with upside potential; however, it&#x27;s crucial to maintain a disciplined valuation strategy.</li><li data-block-key="buo36">Recognizing the strong fundamentals and macro stability that support India&#x27;s equity valuations suggests further upside potential.</li><li data-block-key="1de8l">We believe a disciplined investment process is essential for valuation assessment.</li><li data-block-key="4cnc9">We carefully assign fair values that reflect the intrinsic worth of our investments when it comes to portfolio construction. This approach ensures we do not overpay while effectively capturing the upside potential in the opportunities we pursue, allowing us to adjust our positions as needed.</li></ul>Conclusion<ul><li data-block-key="c15i0">Our constructive positive view on Indian equities is supported by consistent policy continuity, macroeconomic resilience, supportive domestic flows and strong economic growth leading to mid-teen earnings growth.</li><li data-block-key="e2mjn">We believe that current valuations make Indian equities more interesting for investors seeking opportunities in the Indian market.</li></ul>Investment risksThe value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.References:<ol><li data-block-key="c84c">Factset, 25 October, 2024</li><li data-block-key="fij58">Goldman Sachs, 25 October 2024</li><li data-block-key="41eqv">Morgan Stanley, 24 October 2024</li><li data-block-key="4gl8d">Bloomberg, September 2024</li></ol>Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco's Insight: Indian equities - Valuation has come down

With all signs pointing to a Donald Trump win, we expect many of his populist policies to cause ripples, even though markets were largely priced for this outcome. How might investors navigate the election result?Key takeaways<ul><li data-block-key="eunck">Donald Trump’s focus on lower corporate taxes and further de-regulation should favour US companies, particularly smaller businesses with attractive equity market valuations.</li><li data-block-key="6hd0q">While Republicans have likely won the Senate, a red sweep of Congress would enable him to push through tax cuts and higher spending – increasing the chances that credit markets are unsettled by unfunded fiscal largesse.</li><li data-block-key="783jr">We think a Trump victory could carry more geopolitical risk than a Kamala Harris win because his geopolitical strategy involves an unpredictable approach to both his allies and foes. Expect higher trade tariffs with China and potentially some European nations.</li><li data-block-key="2m427">Mr Trump’s likely tough stance on a range of issues ranging from trade to immigration may potentially boost the US dollar and gold. The impact on bond markets is more difficult to predict and we anticipate some volatility in equities until the results are finalised. If a Trump win is confirmed quickly, we can anticipate volatility to move lower as uncertainty is removed.</li></ul>With final results still coming in, it looks like Donald Trump has won the 2024 US presidential race. His victory follows a fiercely contested campaign in which the candidates were polling neck and neck for much of the time. The results of key congressional races could take longer to decide, with the first indications favouring a Republican sweep. Historically, markets have tended to perform best under a so-called divided government where no one party controls the presidency and both chambers of Congress – the House of Representatives and the Senate.Although we expect some volatility to linger until the final result is known, the margin of the win suggests risk-on sentiment may begin to take hold. We also expect some flight-to-safety response in the meantime. This would likely favour perceived safe havens such as the US dollar on expectations of a stronger economy, fiscal support and taxes leading to more inflation, while gold could continue to be favoured as a way of hedging geopolitical risk.The response of bond markets is more difficult to predict, considering a strong rise in yields since mid-September, but in the event of a red “sweep” we would expect further consolidation in the bond market. In equities, we think smaller-cap equities are attractively valued and we maintain some open option positions in our portfolios for now in case of volatility.With a still-robust US economy, investors may consider using any pullback in markets as a tactical opportunity to diversify or add to risk, especially as markets usually do well post elections and end of year months are usually supportive.What the result could meanOur analysis of Mr Trump’s plans explores the potential market implications across various key policy areas:1.Fiscal plans: tax cuts extended?<ul><li data-block-key="ffkg5">Mr Trump is promising lavish spending, big tax cuts and deregulation. His proposals could boost near-term growth as well as US company earnings, particularly US small caps and the energy and financial sectors. These plans could also raise US government debt by USD 7.5 trillion by 2035, according to the Committee for a Responsible Federal Budget at a time when US national debt-to-GDP is already more than 120%.</li><li data-block-key="ebcbk">We see potential for credit markets taking fright at unfunded fiscal plans if Republicans gain control of Congress (a red sweep). We think the dollar’s status as a funding and trade currency offers the US some protection from any negative market reaction to fiscal stimulus.</li><li data-block-key="c5rrb">Fiscal largesse – together with higher tariffs, tougher immigration policy and looser regulations – tends to be inflationary. In response, the US Federal Reserve may moderate its easing cycle, potentially supporting the dollar.</li></ul>2.Tariffs and trade policy: negotiating tactic or reality?<ul><li data-block-key="3t04m">Mr Trump has pledged to impose a 20% blanket levy on all US imports, plus a 60-100% tax on Chinese products. If the tariff hikes materialise, they could trigger retaliation by other economies, leading to a trade war, which in a worst-case scenario could push the US into a recession.</li><li data-block-key="6nq2">We foresee more regional nearshoring and onshoring as companies diversify their manufacturing bases and supply chains – a move that could strain balance sheets.</li><li data-block-key="4cai5">Higher tariffs could hit European and emerging market stocks, particularly those reliant on the US market, such as makers of luxury goods, cars, aircraft producers and steel companies. Value stocks within oil, finance and potentially infrastructure could benefit in such a scenario. Navigating potentially wide disparities in performance between winners and losers within sectors and themes and between regions will require active investment management.</li></ul>3.Geopolitics: return of the “dealmaker”<ul><li data-block-key="8a2gj">The geopolitical backdrop is likely to shift markedly under Mr Trump. As well as a more aggressive approach to China, we anticipate a higher probability of a military confrontation with Iran and a potential escalation in the Middle East conflict.</li><li data-block-key="d79nr">In contrast, there may be a quicker end to the Ukraine war if Mr Trump pushes for a deal with Russian president Vladimir Putin. An end to that conflict could lead to lower commodity prices if Russia officially re-enters the market. Europe would have to beef up its military spending, leading to higher debt and less productive fiscal expenditure.</li><li data-block-key="fbolp">We also expect more tensions with some European countries, with potential tax increases on imports which could weigh on European growth.</li></ul>4.Monetary policy: staying independent?<ul><li data-block-key="bi5n9">We see the potential for market anxiety if Mr Trump seeks to undermine the independence of the US central bank even simply in the form of comments. Any sustained attack on the Fed could accelerate the de-dollarisation trend. The US risk premium could also increase as the supply of new US Treasury issuance sold internationally starts coming under pressure.</li><li data-block-key="b8b76">Safe havens such as gold and traditionally defensive currencies, including the Swiss franc and Japanese yen, could profit.</li><li data-block-key="bgkns">For US Treasuries, we think the impact may be felt more on short-term rates than long-term rates. A narrower spread between US yields and the rest of the world could dampen the US dollar, while equities and commodities may benefit from the prospect of monetary stimulus.</li></ul>5.Climate policy: commitments diluted?<ul><li data-block-key="fuo2u">Any slowing in the US commitment to climate change mitigation under a Trump presidency may boost China’s drive to become a global leader in climate technologies. Stock markets are also pricing in a dilution of President Biden’s flagship Inflation Reduction Act, which included sizeable investments in clean energy.</li><li data-block-key="3tf1u">With many Republican states also profiting from this spending, we expect only moderate impact and consider a repeal of the act as only likely in the case of a red sweep. Any reversal of the act could harm the renewables sector, including international companies exposed to the US renewables market.</li></ul>Focus on potential market opportunities through the volatilityAlready buoyed in recent months by the taming of inflation and the increasing likelihood of a soft landing for the US economy, markets will want to see a swift election outcome. The S&amp;P 500 usually rises after US election risks pass in the absence of a recession – and we anticipate a similar trend this time.In the current environment, we see several opportunities to consider:<ul><li data-block-key="7gjgu">We see scope for broader participation in the Magnificent Seven’s recent stellar run if the US economy achieves a soft landing. US equity market concentration has been at its highest level for decades and an equal-weighted investment approach – giving the same importance to each stock in a portfolio regardless of its market capitalisation – can offer diversification and rewards if positive earnings lead to a convergence in valuations. A Trump presidency with a more laissez-faire approach could boost the M&amp;A market, benefiting smaller cap technology stocks.</li><li data-block-key="49e3h">After powering to new heights over the past year, we think gold prices may have further to run, supported by strong buying from retail and emerging market central bank demand in an environment of elevated geopolitical risk. A ratcheting of tariffs – raising the risk of a trade war – could also be supportive for gold.</li><li data-block-key="3kj5f">We are more cautious on fixed income compared to previous months as we foresee US growth being supported by further fiscal expansion. Larger fiscal deficits ahead would present upside risks for term premia in longer-dated bonds, favouring a bear steepening of the US yield curve, although the increased risk of higher tariffs could also see the market price a less dovish Fed policy stance ahead. The US dollar would also likely strengthen in this scenario. Bond market volatility may well remain elevated in the near term as the market digests the make-up of the new Congress, so we think tactically trading duration would be wise.</li><li data-block-key="ft5ic">Outside the US, we see value in the UK where election risk has passed, favouring UK Gilts for their high-quality duration. We have become more constructive on emerging market hard currency bonds.</li><li data-block-key="7jk1o">Finally, if the independence of the Fed is undermined under a Trump presidency in a way that spooks investors, they may favour other safe-haven currencies like the Japanese yen and the Swiss franc over the US dollar.</li></ul>Some investors stay on the sidelines during elections. However, now that the results are known, markets are likely to return their focus to the economy and the path of interest rates. This means for most investors the important thing is to look through any volatility and stay invested and diversified, rebalancing where appropriate.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz Insight: Donald Trump poised for White House return

How have corporate bond returns fared when spreads are tight?Tight spread environments can be a challenge for the returns of corporate bonds compared to government bonds. However, slim spreads do not necessarily spell disaster for corporate bond investors.The risk of underperformance arises when trading corporate bonds, as prices will fall if spreads increase to normal levels. However, for long-term investors, default rates on investment-grade (IG) corporate bonds have averaged just 0.1% per year over time, meaning 99.9% of these bonds don’t default annually. Although you are not getting compensated as much for lending out your money, it is not to say that holding to maturity won’t yield returns exceeding those from government bonds.Currently, overall yield levels are significantly higher than they have been in the past decade, providing a larger margin of safety against negative returns. On a 12-month view, IG bond yields would need to rise by 0.7%, and high-yield (HY) bonds by around 2%, before bondholders would face losses.Despite recent market volatility, USD spreads remain tight relative to history, with both IG and HY spreads near their post-global financial crisis lows. Tight spreads have historically led to weaker excess returns, as lower spread ‘carry’ reduces the room for bond price increases. Our analysis of over 27 years of data shows that tighter spreads consistently result in lower excess returns, though variability exists.Hit rate analysis, which measures the proportion of time excess returns are positive, further confirms this trend. When IG spreads are in the tightest decile, positive 12-month excess returns have been generated only 12% of the time, while HY bonds have a higher success rate of 41%.However, tight spreads don’t have to be awful depending on investment time horizon and perspective. Even in HY markets, where default rates can spike, the long-term average default rate has been around 4%, with recovery rates on defaulted bonds averaging 40%.With inflation falling and central bank rates expected to decline, corporate bonds may remain attractive to long-term investors looking to lock in elevated yields. Higher yields today have brought about a greater margin of safety, as IG yields would need to rise by 0.7% and HY by 2% before losses occur, offering reassurance to those concerned about future price declines.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Schroder’s Insight: Corporate Bond

After an extraordinary election campaign, tensions are running high ahead of the US vote in November – and the implications for markets could be quite different depending on who wins. We analyse the policies of the two nominees. The result with the biggest market impact? Potentially a second Donald Trump presidency with a so-called divided government.Key takeaways<ul><li data-block-key="eunck">We see three main channels in which the policies of Vice President Kamala Harris and former President Donald Trump will impact markets: economic growth, inflation and demand for safe-haven assets.</li><li data-block-key="fes0u">Given our underlying assumption for a divided government, we think a second Trump presidency could mean weaker international and US equities, but support for the US dollar and gold, with the implications for US Treasuries less clear.</li><li data-block-key="ckbi5">With Ms Harris likely to continue at least some of the policies of President Joe Biden, the market impact if she wins may be more neutral, with possible support for US equities and commodities.</li><li data-block-key="fccpt">Regardless of who wins, we think fiscal policy could have a surprisingly limited impact, since the candidates’ more aggressive tax and spending proposals would fail to become law without support from Congress.</li></ul>The two candidates in November’s US election have contrasting views on domestic and international issues – and we see the potential for a wide-ranging market impact, particularly on hot-button issues like immigration, tariffs, spending and taxation.Overall, we think policies will impact financial markets via three main channels: economic growth, inflation and demand for safe-haven assets.Our findings show that a second term for former President Donald Trump may cause bigger market ripples in the near term.Analysing the costs and effects of campaign proposals has been a fluid exercise. New – potentially costly – announcements have recently been made without warning, frequently without detail.To simplify, our analysis focuses on the dominant near-term (12-month) effects of policies announced thus far. We also assume that the incoming US president will be forced to navigate a divided government, where a single party does not unilaterally control the presidency, the House of Representatives and the Senate. This is important because it means the candidates’ most ambitious proposals – particularly on the fiscal front – could easily be stymied by opposition in Congress.Starkly different policies may mean a varied market responseWe’ve analysed the effects on markets across seven policy areas where we think the impact will be most pronounced (see below and Exhibit 1):1.Fiscal policy: major stimulus is unlikely under a divided governmentVice President Kamala Harris and Mr Trump are both promoting big spending and taxation plans. Mr Trump’s proposals – including full extension of expiring 2017 tax cuts – could cost USD 11 trillion, according to the Tax Foundation, a right-leaning think tank.1 By comparison, Ms Harris’s commitment to raising taxes on corporations and wealthy households while supporting low-earners and families could reduce deficits slightly.2 The challenge for both candidates is that Congress controls the government’s purse and, under a divided government, opposition politicians can block the president’s fiscal plans. Importantly, while a divided government could mean tough negotiations around extending the 2017 tax cuts, we think a bipartisan majority of policymakers will act to prevent a fiscal cliff. As a result, regardless of who wins the presidency, the market impact from fiscal policy may prove rather neutral.2.Trade policy: tariffs will be a focus for marketsPresidents can affect trade policy through tariffs without Congressional approval. This opens the door to unilateral actions that can influence growth, inflation and markets. Mr Trump’s approach includes a 20% blanket levy on all US imports plus a 60% to 100% tax on Chinese products. If implemented, this may defray some of the costs of Mr Trump’s tax proposals. But it could also create headwinds for foreign equities, in addition to a US inflationary impulse that could initially send US Treasury yields higher. The question is whether the US economy could withstand higher inflation and yields, suggesting a subsequent risk of recession and lower yields. Ms Harris does not support across-the-board tariff rises or raising tariffs on Chinese imports. She would likely retain the existing tariffs and sanctions that Mr Trump and President Joe Biden introduced.3.Institutional approach: geopolitical backdrop could shift under Mr TrumpIf Ms Harris wins, markets can expect continued support for the rule of law, Ukraine and other allies, as well as global institutions such as NATO. But Mr Trump’s approach might include efforts to undermine NATO, less consultation with US allies and an end of support for Ukraine. Back home, Mr Trump would likely seek to terminate the remaining court cases against him and pardon the convictions of those involved in the 6 January 2021 attack on Capitol Hill. At the margin, these efforts may bolster global demand for safe-haven assets and weigh on international equities.4.Immigration policy: keep an eye on labour supplyBoth candidates are indicating they will tighten immigration, in the wake of a rise in net immigration since the Covid-19 pandemic. American presidents have some power to unilaterally affect immigration policy, at least temporarily. This means a tightening of immigration under Mr Trump could dampen the supply of labour, suggesting faster wage and consumer inflation, higher US Treasury yields and tighter margins for US companies. Relatively easier immigration under Ms Harris could have the opposite effect.5.Monetary policy independence: expect the Fed to be under fire from Mr TrumpMr Trump has been critical of Federal Reserve (Fed) Chair Jerome Powell and we think he may undermine the Fed’s independence by openly and aggressively pushing for stimulus, before replacing Mr Powell at the expiry of his second term in May 2026. For US Treasuries, we think the impact may be felt more on short-term rates than long-term rates due to lingering inflation concerns. A narrower spread between US yields and the rest of the world could dampen the US dollar, while equities and commodities may benefit from the prospect of monetary stimulus.6.Climate policy: energy policies will feed through to inflation and asset valuationsMr Trump would likely undo many of his predecessor’s climate policies and aim to expand fossil fuel production. Such a move may initially boost the US economy via cheaper energy costs, prompting disinflation and lower US Treasury rates. Longer-term affects may be different. While Ms Harris has been relatively ambiguous on climate policy, she’s still expected to support the green energy transition, meaning reduced oil and gas supplies – a potential driver of inflation, US Treasury yields, the US dollar and commodities excluding gold.7.Regulatory policy: Mr Trump’s plans to cut red tape may bolster US equitiesWe expect Mr Trump to put a greater focus on ease of doing business by reducing regulatory barriers across the energy, financial and consumer sectors. Mr Trump has even suggested that businessman Elon Musk could lead a special commission on reducing federal spending. If effective, those moves could soften the rate of inflation in the near-term, leading to lower US Treasury yields and a weaker dollar. All else equal, this could also support US equities. We anticipate Ms Harris’s regulatory approach to remain broadly in line with Mr Biden’s, meaning neutral affects for markets.Exhibit 1: Our expected market reaction to policies under the two main candidates (based on a 12-month investment horizon under a divided government)<img class="fullwidth" src="/media/images/MB1102_chart1_EN.2e16d0ba.fill-1142x533.jpg" alt="MB1102_chart1_EN.jpg" />Dark green = very positive impact, light green = positive impact, yellow = Neutral or TBD, light red = negative impact, dark red = very negative impact Note: Assessment based on our expectation of a divided government. We still don’t know the exact agenda of both main candidates, while the risks around our expectations are sizeable. *Support for rule of law, traditional US allies, global institutions. Source: AllianzGI Global Economics &amp; Strategy. Allianz of America, Bloomberg, Washington Post; Whitehouse.gov, Associated Press, Politico; as at September 2024Who would be better for markets?In combination, we think Mr Trump’s policies may be supportive of the dollar and gold. He took a tough stance on a range of issues during his time in office – and we expect a similar approach if he is re-elected, potentially boosting these safe-haven assets.US equities had a strong tax-cut-fuelled run during Mr Trump’s first administration. However, hopes for a repeat rally seem at odds with the fiscal restraint of a divided government and the inflation impact from Mr Trump’s trade and immigration proposals. For foreign equities, while the same dynamics apply, the impact could be amplified due to reduced access to US markets and diminished institutional support for traditional US allies.Overall, we think the market impact from a Harris presidency might be more neutral. Ms Harris may not be the incumbent, but her views and policies will be similar enough to Mr Biden’s to suggest a measure of continuity.While we consider a divided government the most likely election outcome, we are cognisant of the rising possibility of a unified government, under which the market reaction may differ meaningfully.Finally, while our analysis focuses on near-term market effects, we recognise that second and third round effects are possible. Market pricing of prospective policy changes will also likely be uneven – some effects may already be pricing in, while others may take longer to materialise.Staying invested is critical through the electionRecent polls indicate a deadlock between the two candidates.3 But in an extraordinary campaign that has already seen Mr Biden’s withdrawal, two assassination attempts on Mr Trump, and the first Fed rate cut in more than four years (a move that could boost Ms Harris’s prospects), further twists may lie ahead. Market participants will need to stay watchful in the run-up to November.Markets don’t like uncertainty: ahead of the vote in election years, volatility typically rises. The tendency for some investors is to stay on the sidelines. However, once the results are known, markets are likely to return their focus to economic growth and interest rates. This means for most investors the important thing is to look through any volatility and stay invested.1 Source: Trump Dangles So Many Tax Breaks Even Some Advisers Are Confused, Bloomberg, 23 September 2024 2 Source: Kamala Harris Tax Plan Ideas: Details and Analysis, Tax Foundation, 10 September 2024 3 Source: Harris Had Stronger Debate, Polls Find, but the Race Remains Deadlocked, The New York Times, 19 September 2024Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz Investor’s Insight: US elections monitor - Policy Impact

Only with rich investment experience and a unique investment philosophy can one become an investment guru📈. Even masters like Warren Buffett, Charles Munger or Benjamin Graham have different approaches when facing market fluctuations🙂‍↔️.If you want to become an investment expert and formulate your own investment theory, it might be good to learn from the following investment theories mentioned by them📖:&quot;There are investment products that perform well regardless of market conditions. Don’t pass up something that’s attractive today because you think you will find something way more attractive tomorrow. Seize the opportunity and choose the investment product you like.&quot;If you are an investor with this philosophy, you can refer to the best performing funds in the current market conditions1 to capture growth opportunities.The Top 10 YTD Performing Funds (USD/HKD) on our shelf include:<img class="fullwidth" src="/media/images/PF_USD_EN.2e16d0ba.fill-1280x1021.png" alt="PF_USD_EN.png" /><img class="fullwidth" src="/media/images/PF_HKD_EN.2e16d0ba.fill-1280x1021.png" alt="PF_HKD_EN.png" />On the other hand, many investment gurus also advocate diversified investment and believe that the mixture of equity and bond is one of the all-around strategies to face market fluctuations💡. If you don&#x27;t want to put all your eggs in one basket, you can refer to mixed asset funds to cope with different market conditions.All the Mixed Asset Funds on our shelf include:<img class="fullwidth" src="/media/images/PF_MIX_EN.2e16d0ba.fill-1280x1718.png" alt="PF_MIX_EN.png" />The future is never certain, and short-term speculation amounts to betting on what will happen. Real investment experts can be friends with time🤝, stay calm under short-term market fluctuations, and adhere to long-term investment principles. WeLab Bank will accompany you on your journey to becoming an investment expert 💰😎!Remark 1 We only list out the top 10 best performing funds for both USD and HKD for easy reference. For full list of featured funds, please login to WeLab Bank APP or refer to our website.  Source: ISIN, fund performance and other information are provided by Morningstar Asia Limited, and the data is as of September 30, 2024. The dividend yield is annualized value and dividend rate is not guaranteed, and dividend may be paid out of capital. We are not responsible for or endorse the accuracy of the information. Past performance is not an indicator of future performance. Please refer to the fund&#x27;s offering documents for more details on fund performance. For full list of featured funds, please login to WeLab Bank APP or refer to our website.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How do investment gurus seize opportunities under market fluctuations?

A dip in US growth will have an impact on Asia&#x27;s own rates of expansion, but the slowdown will also provide room for the region’s policymakers to cut interest rates.In the Battle of the Red Cliffs, a mythologised episode in Chinese history that mirrors David and Goliath, a small navy defeats much stronger opponents by summoning the eastward-blowing wind, setting ablaze entire enemy fleets. Almost two millennia later, ’borrowing the east wind’ continues to be the Chinese expression of choice for smart strategies that leverage external forces to one’s advantage.For those investing in Asia, the fourth quarter of 2024 may well suit that approach. Risks are compounding outside of the region, from a slowdown in US growth and a pivot in monetary policy, to the prospect of geopolitical shocks to the system. A tactical, defensive posture - constructive on bonds, selective in equities - could help investors make the most of these circumstances and prepare for better days ahead.Free from the FedAsia’s central banks have been constrained by a hawkish US Federal Reserve for some time. Cutting their interest rates would have meant widening the gap with the US and risked a sell-off in their respective currencies. That situation changed in September when the Fed finally delivered a 50-basis point interest rate cut. With the exception of Japan, we believe most Asian central banks will feel comfortable trimming policy rates following the Fed’s cuts, given their positive real rates. Indonesia has even moved slightly ahead of the Fed’s decision, reducing interest rates by 25 basis points to 6 per cent in the same week - its first rate cut in more than three years.The natural conclusion is that investors should feel more confident adding duration in high quality bonds, from sovereigns to investment grade. Any reverberation of US economic pain is likely to be more keenly felt in equities, where earnings of exporters could take a hit. The stock market still has plenty to offer, especially companies that benefit from artificial intelligence (AI), the energy transition, and shifts in supply chain. But we’re putting more focus on valuations and stocks’ margins of safety to withstand further near-term shocks.<img class="fullwidth" src="/media/images/MB1024T1_EN.2e16d0ba.fill-1299x785.jpg" alt="MB1024T1_EN.jpg" />Slow downHow Asia performs also depends, of course, on China and Japan, the two largest economies in the region. China is struggling to gain momentum as consumers and homebuyers remain cautious. With just three months to go until the end of the year, the country’s around 5 per cent annual GDP growth target looks challenging. We’ve lowered the probability of our ‘controlled stabilisation’ base case (from 65 to 55 per cent) and raised the risk of a serious slowdown (to 35 per cent). Reflation remains a remote possibility (at 10 per cent).Chinese policymakers have been working hard to restore confidence. In September, China lowered the downpayment threshold for home purchases, cut interest rates further, and promised to provide more liquidity in the stock market. While China continues to refrain from unleashing huge credit stimulus, these measures underscore officials’ focus on domestic demand, which is supportive for sentiment. ‘Lower for longer’ interest rates - which remain positive when adjusted for inflation - will keep the Chinese bond rally going. For equities, defensive sectors such as banks and utilities are more resilient. More change could come in the October politburo meeting or the Central Economic Work Conference towards the end of the year. But don’t expect drastic policy shifts while external uncertainties, such as the US election, weigh over financial markets.Having escaped the deflation trap, Japan is guarding against inflation, which is set to stay above the Bank of Japan’s 2 per cent target next year. That should lend the BOJ confidence to hike gradually over the coming quarters and draw the country closer to positive real rates. The volatile market reaction to the central bank’s 15-basis point increase in July could slow, but not reverse, Japan’s path on interest rates. In equities, smaller companies that haven’t benefitted as much in the rally over the past year will likely catch up. However, any shift in US trade policy could have implications for Japan, while the change of premiership could present another tail risk for domestic markets.<img class="fullwidth" src="/media/images/MB1024T2_EN.2e16d0ba.fill-1213x736.jpg" alt="MB1024T2_EN.jpg" />Structural storiesThe promise of structural forces supporting Asia is real, from the demographic dividend in India and Southeast Asia, to the advent of AI and the energy transition. But as markets grow more alive to near-term risks, we expect more scrutiny of these structural stories. We’ve already seen this play out in AI, as investors rotated out of semiconductor-heavy Taiwan and Korea, and into Asean markets expecting a more imminent boost from monetary policy.Likewise, we are hopeful on India’s long-term prospects. Its fundamentals are solid and its pace of growth - forecast at 7 per cent this year - is not to be scoffed at. But after an extended rally, valuations in some corners of the stock market may be too hot to handle. Lurking in the background is the risk from the unwinding yen carry trade, as speculators exit popular - and crowded - stock markets. The outlook for Indian bonds may be more favourable on the back of their addition to global benchmarks and positive real interest rates.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Insight: Q4 2024 Asia Investment Outlook

This August, global stock markets experienced significant fluctuations. Fortunately, these fluctuations turned out to be mere market noise, and a rebound quickly followed the initial panic. Japan’s Nikkei 225 Index saw its largest single-day drop, followed by a substantial rebound. A similar situation occurred in the US stock market, where disappointing employment and manufacturing data initially dampened market sentiment. However, with retail sales data exceeding market expectations, US stocks then regained their upward momentum. Slowdown in the US job market does not constitute a recessionIt is not uncommon for markets to experience sharp short-term fluctuations. We believe investors should adopt a diversified investment strategy, using a more flexible approach to navigate market turbulence and mitigate the impact of short-term volatility on their portfolios. By diversifying investments across stocks, bonds, and various asset classes, with a mix of long-term structural and cyclical investment themes, investors can better respond to different market conditions.With the US Federal Reserve (Fed) finally reducing interest rates as expected in September by 50 basis points, concerns about a potential recession in the US economy have arisen. The rise in US Treasury prices also reflect market apprehension regarding economic weakness.Despite recent market volatility, our baseline expectation remains a “soft landing” for the US economy. We believe that the increase in numbers in the US labour force is one of the reasons for the recent weakness in US employment data, partly affected by weather conditions. Overall, as long as inflation continues to move in the right direction and shows a downward trend, this will provide the Fed with sufficient flexibility to prevent an economic recession.Searching for value beyond tech stocksBased on our forecast of a higher likelihood of a “soft landing” for the US economy, we hold an overall positive outlook on the stock market. However, in response to market volatility, we believe that a more balanced investment strategy focusing on both growth and yield is more appropriate right now. Given the narrowing profit growth forecast gap between US tech stocks and other sectors, we maintain a neutral view on high-valued US tech stocks. Sectors with more attractive valuations may warrant greater attention from investors.From an investment theme perspective, we continue to prefer four major long-term investment themes: technology transformation, energy evolution, connected consumer, and transitioning societies. For the technology transformation theme, we still see growth potential in areas such as digitalisation, cloud computing, robotics, and cybersecurity. The connected consumer theme encompasses e-commerce, logistics and warehousing, data centres, and fintech-related companies, while the transitioning societies theme focuses on healthcare innovation, urbanisation, and smart cities.As for cyclical investment themes, we are in favour of commodities due to the recovery in demand and companies that possess pricing power in an inflationary environment.Positive bond outlook in a controlled inflation environmentThe controlled inflation environment will continue to enhance the role of bonds as a hedge against recession risk within investment portfolios. Additionally, as the yield curve gradually flattens, government bonds may regain their significant appeal as risk diversifiers. Based on these two factors, we are optimistic about the bond markets. Outside of US Treasuries, expectations for further interest rate cuts by the European Central Bank have spurred demand for bonds from issuers in interest-sensitive sectors.Meanwhile, investors may consider expanding their investment exposure beyond traditional bonds and into other asset classes for further diversification. For instance, securitised credit is currently one of our favoured asset classes. Compared to US investment-grade bonds, securitised credit can enhance the overall yield and credit quality of an investment portfolio while lowering duration risk.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Schroders’ Insight: Capturing potential growth through diverse investment themes

Since the U.S. Federal Reserve raised interest rates in 2022, Money Market Fund (‘MMF’) has followed the pace of interest rate increases and has achieved stable return performance, some of them performing up to 5.41%1 in the past 1 year, becoming a popular investment product in the market. Why is money market fund so popular? The following is a brief introduction to you.<h2 data-block-key="515v4">What is Money Market Fund (‘MMF’)?</h2>Money Market Fund invests in short-term debt securities such as U.S. Treasury Bills and commercial paper and are generally low-risk investments.The management goal of MMF is to maintain a highly stable asset value through liquid investments. At the same time, some funds pay income to investors in the form of dividends. Investors can buy and redeem funds when needed, so MMF offers high liquidity and flexibility.Advantages<ul><li data-block-key="1vsa4">Stability: one of the lowest volatile types in fund investments</li><li data-block-key="f4cc8">Liquidity: Most MMFs can be redeemed on the trading day, and some MMFs can even be credited the same day after redemption</li><li data-block-key="ea3og">Safety: As a low-risk investment, MMF is less susceptible to market fluctuations than other types of investments by investing in a portfolio of highly liquid and short-term cash and cash like instruments</li><li data-block-key="bd9qn">Short holding period: Due to the short holding period, the interest rate risk it bears is usually lower than that of long-term bond funds.</li></ul>Major Risks2<ul><li data-block-key="36j77">Credit risk: Although MMF typically invests in high-quality securities and will make its best efforts to manage and mitigate credit risk within the MMF portfolios, there is a risk of loss as an investment product, and it cannot promise to protect the capital</li><li data-block-key="3ro0a">Inflation risk: MMFs are designed to provide a relatively stable investment option, with the underlying investments typically being short-term securities. However, due to its conservative nature, their returns are typically lower than those produced by more volatile investments, such as typical stock and bond funds.</li></ul><h2 data-block-key="6obsb">Why is Money Market Fund called ‘parking fund’?</h2>During periods of market volatility, in addition to holding cash, you can also consider choosing MMF: When you are waiting for an entry point for an investment fund, Money Market Fund could be a good alternative to sitting on cash and provide the opportunities to earn returns in Money Market.Money Market Fund, also known as ‘parking fund’, have relatively lower risks than other funds, and there are generally no additional fees for switching to money funds.<h2 data-block-key="bqlld">Product Overview: Money Market Fund, Time Deposit, Savings Insurance Plan:</h2><img class="fullwidth" src="/media/images/MMFtable1_ENV2.2e16d0ba.fill-1280x1298.png" alt="MMFtable1_ENV2.png" /><h2 data-block-key="22p21">Money Market Fund’s Return Performance</h2>The following are the return performance details of money market funds distributed by WeLab Bank (data as of Sep 30, 2024)<img class="fullwidth" src="/media/images/MMFtable2_EN.2e16d0ba.fill-1276x540.png" alt="MMFtable2_EN.png" /> Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Note<ol><li data-block-key="7nbqt">Data Source: Refer to Morningstar, among all the money market funds available in WeLab Bank platform, the highest 1-year return performance was 5.41% as of 30 Sep 2024.</li><li data-block-key="c2j05">The list of risks is not exhaustive, while it only highlights a few of them among other risk types.</li><li data-block-key="fud6k">A deposit protection scheme protects depositors by paying compensation to them in the event of a bank failure. In Hong Kong, the DPS is established under the Deposit Protection Scheme Ordinance (DPS Ordinance). Most of the commonly placed deposits with Scheme members, whether denominated in Hong Kong dollar, renminbi or any other currency, qualify for this protection. These include current accounts, savings accounts, secured deposits and time deposits with maturity not exceeding five years.</li></ol>Disclaimer<ul><li data-block-key="6hqph">This webpage is for information only and does not constitute any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.</li><li data-block-key="7a439">Investment involves risk. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Part of your investment may not be able to liquidate immediately under certain market situation. Please refer to our Wealth Management Services Terms (including relevant risk disclosures) and relevant fund offering documents for more details of our services as well as the nature and risks of the relevant products.</li><li data-block-key="oijo">The investment decision is yours but you should not invest in these product(s) nor services unless the intermediary who sells them to you has explained to you that these products are suitable for you having regard to your financial situation, investment experience and investment objectives.</li><li data-block-key="3n1cm">Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).</li><li data-block-key="5o85c">If you have any inquiries on the nature and risks involved in this webpage, relevant product(s) and services, trading or investment funds, etc, you should seek advice from independent financial adviser.</li><li data-block-key="eitqr">The information contained on this Website should not be construed as a distribution, an offer to sell, or a solicitation to buy any securities in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction. If you are outside of Hong Kong, please inform yourself about and observe any relevant restrictions. By proceeding with a purchase, you are representing and warranting that you are either resident in Hong Kong or the applicable laws and regulations of your jurisdiction allow you to access the information in this Website or our App and make the purchase.</li><li data-block-key="66hur">This webpage is issued by Welab Bank Limited. The contents of this webpage have not been reviewed by the Securities and Futures Commission in Hong Kong.</li><li data-block-key="f0idm">In case of any discrepancy between the English and the Chinese versions of this webpage, the English version shall prevail.</li><li data-block-key="2to7f">For dividend of certain share classes, payment of dividend out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the Net Asset Value per share.</li><li data-block-key="2sst7">The performance details displayed on the website may encounter delays due to website maintenance. Please refer to the GoWealth page of WeLab Bank App for the latest available performance details.</li><li data-block-key="4ovag">Money Market Fund is not equivalent to time deposit. It is also not protected under the Deposit Protection Scheme in Hong Kong. The value of the Fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost. Investors should not make investment decisions based on this website alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors.</li></ul>

Investment updates

Must-read: Money market funds, a popular investment product in the market

China fired off a meaningful monetary stimulus salvo this morning, ushering in trillions in RMB of liquidity to the market.1<ul><li data-block-key="d7onh">Existing mortgage rate cut by 50bps</li><li data-block-key="9pttu">The reserve requirement ratio (RRR) to be cut to 9.5% from 10.0%</li><li data-block-key="1osn4">The 7-day reverse repurchase rate to be cut to 1.5% from 1.7%</li><li data-block-key="b1v4a">Downpayment ratio on 2nd homes to be cut to 15% from 25%</li></ul>The coordinated press conference afterwards with three main regulatory bodies underscores the policymaker efforts to right-size the economy.These measures send a strong signal that the government is responding to some of the economy’s headwinds.<h2 data-block-key="4om9p">Future rate cuts are on the table</h2>I believe that today’s stimulus measures squarely puts China’s growth target of 5% back on track. The most important rate cut, is the one for existing mortgages.According to PBOC Governor Pan, cutting the outstanding mortgage rate is expected to lead to 150bn RMB in interest expense savings, much of this could lead to consumption and investment.Pan also said that future rate cuts are on the table, which is a forward guidance tidbit.<h2 data-block-key="4h10r">China key policy rates</h2><img class="fullwidth" src="/media/images/Chart1.2e16d0ba.fill-1280x720.jpg" alt="Chart1.jpg" />(Source: People&#x27;s Bank of China (PBoC). Data as of 24 September 2024)There were other initiatives as well.For example, the PBOC will set up a swap facility that will allow banks and brokers to borrow money from the PBOC to purchase stocks to the tune of around RMB 500bn.Pan also announced that the PBOC is examining a stabilization fund for stocks though details are forthcoming.In addition, the PBOC announced enhanced measures for its housing rescue package to better support regional SOEs to purchase uncompleted units at a reasonable price.<h2 data-block-key="c5r21">More stimulus may be required, both on the supply and demand-side</h2>With the US Fed cutting its policy rate by a jumbo 50bps, this opens the doors for other central banks such as the PBOC to cut interest rate as well.Expectations are for a wave of new easing measures around the APAC region as the risk for capital flight and currency headwinds recede.Though monetary stimulus is helpful as it reduces borrowing costs, there is only so much that supply-side stimulus can do to stimulate demand.For sentiment to change and the economy to reflate again, significantly more stimulus may be required, both on the supply and demand-side.Fiscal support is likely around the corner, which could help reflate the economy and drive a turn-around.Government spending is likely to pick up for the rest of the year.Chinese stocks rose, both the Hang Seng index and CSI 300 cheered the monetary stimulus news.<h2 data-block-key="dmfga">Investment implications – Chinese stocks</h2>I believe that this may be good time to re-visit Chinese stocks. The dividend yield for Chinese stocks is higher than the government bond yields, with the spread at the widest it has been for a long time.This suggests that investors expect a significant cut in corporate dividends, which I don’t think is likely.I believe that investors may pick up Chinese shares at these levels, in front of the stabilization fund that was recently announced and more government support.<h2 data-block-key="853ot">Chinese equities performance year-to-date</h2><img class="fullwidth" src="/media/images/Chart2.2e16d0ba.fill-1280x720.jpg" alt="Chart2" />(Source: Macrobond. Data as of 23 September 2024)Reference:1. Source: A joint press conference between the People’s Bank of China (PBOC), National Financial Regulatory Administration (NFRA) and China Securities Regulatory Commission (CSRC) announced a number of economic measures, September 24th 2024Investment risksThe value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.When investing in less developed countries, you should be prepared to accept significantly large fluctuations in value.Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco’s Insight: Monetary stimulus comes China’s way

<h2 data-block-key="tembo">What happened</h2>In what was a hotly contested meeting, with markets split between a 25 versus 50 basis point start to the cutting cycle, the Federal Reserve ended up going big, cutting rates by 50bp. This was more than we and consensus expected but ultimately broadly in line with market pricing, which had moved more clearly in favour of a larger cut following leaks in the Wall Street Journal over the past few days.The vote was 11-1, with Board of Governors member Michelle Bowman as the first governor dissenting since 2005, voting for a smaller 25bp cut. Fed Chair Jerome Powell&#x27;s statements during the press conference, however, suggest that the discussion was a lot closer to 50/50 than this vote suggests. The market reaction since the presser suggests that this was somewhat of a “buy the rumour, sell the news” event, with yields slightly higher and equities marginally lower.<h2 data-block-key="aaiof">Our interpretation</h2>The Fed is now clearly focused almost entirely on the labour market and the press conference strongly suggests to us that downward revisions to non-farm payrolls following the Quarterly Census of Employment and Wages revisions and the two weak job reports over the summer pushed the “several” members who were ready to cut in July to lobby for 50bp this time to catch up. Powell seems to be clearly in that camp.However, risks are still seen as balanced, and the economic projections remain very positive, including a low and falling unemployment rate over the forecast horizon. Growth is seen at above the long-run potential throughout the forecast period while inflation is forecast to return to target. In fact, the summary of economic projections could not paint more of a &quot;job done&quot; view of the world, which appears more goldilocks than soft landing.The dots that show all Federal Open Market Committee (FOMC) participants’ projections of future interest rates remain higher than market pricing, but we&#x27;d expect rates markets to largely ignore the dot plot and push the Fed towards quicker or stronger easing now that the Pandora&#x27;s box of larger than 25bp cuts is open. There&#x27;s 50bp more easing in the median dot for 2024, but it&#x27;s a narrow majority of 10-9 in favour of 50bp vs 25bp, so the mean dot is higher. Including next year&#x27;s 100bp in the dots, the Fed is looking for another six &quot;normal&quot; 25bp cuts, versus market pricing of around eight by the end of next year. For the rest of this year, markets are now pricing around 34bp for November and 70bp by year-end, almost twice as much as the mean dots suggest.<h2 data-block-key="7fq23">Our outlook</h2>With those projections and balanced risks we don&#x27;t really see the case for additional 50bp cuts, but two more cuts of 25bp this year are clearly on the table. We broadly agree with market pricing of a terminal range of around 3 per cent, but the pace of cuts being priced still looks too fast to us given the healthy and clearly less rates-sensitive state of the economy and risks around election outcomes.The focus will now be on the job reports for September and October, which we get ahead of the November FOMC meeting. A further slowing of job growth and a rising unemployment rate would most likely see markets push the Fed towards another 50bp cut in November.We continue to see a soft landing as the base case but labour market developments over the coming months will determine the direction of travel including pace and magnitude of cuts. We don&#x27;t expect a more significant labour market deterioration in the near term given strong fundamentals and resilient growth, which keeps us on the somewhat hawkish side of market expectations. However, we will continue to assess our views as labour market data and election results come through. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: Fed goes big but volatility ahead

Bond yields are high, inflation is moderating, and some central banks have begun lowering interest rates – an excellent scenario for bond investors. Here, Dan Ivascyn, who manages the PIMCO Income Strategy with Alfred Murata and Josh Anderson, talks with Esteban Burbano, fixed income strategist. They discuss how the portfolio is positioned for current high yields and market volatility amid diverging economic scenarios and interest rate reduction paths across the globe.Q: How are markets responding to macroeconomic trends this year?Ivascyn: Many investors are focusing on macroeconomic data, and they should, since central banks are also focused on that data. Back in December, inflation numbers were easing enough that central banks, particularly the U.S. Federal Reserve, were optimistic and signaled there could be several rate cuts in 2024. But then first-quarter inflation and growth were more resilient than anticipated, and market participants priced out a lot of the cuts that previously had been embedded in rates markets.Recent data have been weaker, and have provided more evidence that inflation is moderating. Obviously the July U.S. employment data raised fears of a U.S. downturn. We still believe it’s possible the U.S. has the resilience to avoid recession, though it’s by no means guaranteed. Growth has slowed across many other countries, including China, and globally we are seeing less synchronized growth, inflation, and policy decisions.Markets tend to respond quickly, and sometimes sharply, to new macro data – recent volatility is a clear example of that. In our portfolios we’re focused on high quality assets that we believe can perform well in soft landing scenarios but also provide meaningful mitigation of downside risks.Q: Looking over our cyclical horizon of six to 12 months, what are the paths for inflation and the economy?Ivascyn: We think inflation will continue to downshift this year and next, though it could be bumpy, and there’s still a decent amount of uncertainty. We anticipate overall resilience in the U.S. economy, while the data continues to suggest some slowing in key areas, and the fiscal picture is concerning. Outcomes will vary depending on who is elected president and whether the same party controls one or both houses of Congress. Monetary policy will also be a key factor; the Fed is likely to start cutting rates in September.Q: Let’s discuss the longer term. We recently published our Secular Outlook, ‘Yield Advantage.’ What is the yield advantage, and what does it mean for portfolios?Ivascyn: As investors, it’s important to tune out the noise, look beyond the short term, and assess valuation. Following that approach, we see compelling value in fixed income, and the opportunity to take advantage of a high quality global opportunity set that also offers liquidity and defensive characteristics.For the Income Strategy, given starting yields today and the potential to generate return going forward, we believe it bodes well for future returns over the next three to five years. Several major central banks have already cut rates, with the Fed very likely to follow this year, providing a great opportunity to potentially lock in those yields for some time. And we don’t need outsize interest rate exposure, either, to position the portfolio for attractive return potential, given the income and capital appreciation opportunities we see in markets around the world today.Consider the appeal of the high starting yields today when core inflation is around 3% and slowing. And if, as active investors, we can capture these yields, then the portfolio becomes even more attractive versus equities, and certainly attractive versus cash. Cash yields have begun to fall from their elevated levels in many countries in Europe and in Canada. We see a high probability they will fall in the U.S. as well. While fixed income investing is not without risk, staying in cash has also become riskier than in the past few years when considering the likely opportunity costs.Q: Could you discuss the overall objective and current high-level approach of the Income Strategy?Ivascyn: Yes – we seek to generate attractive, consistent, and responsible income for investors. We also seek to provide significant value versus passive alternatives, and I believe this is one of the most target-rich environments we’ve seen in many years to look to provide that value. Active asset management is especially critical in uncertain times, and given the shifting policies, political scenarios, and geopolitical unrest worldwide today, we also maintain an eye toward portfolio resilience and risk management.We have been utilizing the strategy’s full global opportunity set, looking outside the U.S. for sources of resilience, the ability to reduce overall portfolio volatility, and ability to target greater incremental yields in parts of the world where the fiscal picture is stronger than in the U.S.Q: Could you elaborate on interest rate exposure in the portfolio, including relative value across regions?Ivascyn: After substantial volatility in the last few quarters, we’ve returned to a more neutral stance on interest rate risk, generally close to the midpoint of where we can operate, which tends to be a bit more defensive than passive alternatives.We’ve also used this opportunity to diversify our positions into high quality interest rate markets outside the U.S. In many of these economies, the central bank policy transmission mechanism into the economy is arguably stronger – in large part because consumers tend to feel the pain (or relief) from rising (or falling) rates much more quickly than U.S. consumers, where 30-year fixed-rate mortgages have been the norm for decades. Over the last several months, we’ve added some interest rate risk in the U.K. and Australia.We broadly agree with current market expectations for central bank cuts over the cyclical horizon, but pricing may even be a bit conservative looking a couple of years out. In light of this pricing, plus a bit of mindfulness around the fiscal picture in the U.S. and some other developed economies (and related market perceptions on sovereign debt), we generally concentrate our interest rate exposure in intermediate maturities: The three- to five-year part of the curve looks quite attractive.Q: Let’s discuss securitized markets, an important area for the Income Strategy. What are your views on agency mortgage-backed securities, as well as non-agency mortgages?Ivascyn: Several dynamics have been in play for agency mortgages. Curves are inverted, interest rate volatility has been high, and the Federal Reserve has been selling agency mortgage securities. Banks, particularly regional banks, another participant in the agency market, have been in a fragile capital and liquidity condition, so they have been buying less or even selling mortgages into the market. All of this has created an unusual and very intriguing situation: The spread on a typical U.S. agency mortgage today is wider than the spreads we see in investment grade corporates. So in the Income Strategy, we went from minimal agency mortgage exposure a few years ago (when the Fed essentially was buying them all) to a significant position of late.We have also focused on seasoned mortgage risk that isn’t guaranteed by the U.S. government, or non-agency mortgage-backed securities. We have found attractive opportunities over the last several months through bank dispositions, both here in the U.S. and across Europe.In general, these non-agency mortgage pools tend to be very low-leverage structures, representing groups of borrowers who have been in their homes as long as 15 or 20 years now, likely benefiting from rising home prices. These borrowers aren’t likely to default even if we see a big shock to the economy or housing markets – which we don’t expect – so the credit risk is relatively low, in our view.Also, the regulatory regime in the wake of the global financial crisis (GFC) requires tight documentation for non-agency mortgage-backed securities, which helps closely align incentives between the underlying investments and investors. Memories are long when it comes to all the pain these sectors caused during the GFC, and rating agencies continue to be conservative. And we can look to pick up incremental structural return to compensate for the relative complexity of these investments without taking on material additional credit risk. Non-agency mortgages are a key focus for the Income Strategy.Q: How is the portfolio positioned in corporate credit today?Ivascyn: We see generic corporate credit trading fairly tight today. We’ve lowered our exposures in the last few quarters, staying in higher-quality, more liquid positions. We also diversify across developed and emerging market credit, but we’ve trimmed some of our emerging market exposure recently as part of an overall more defensive profile, not because we don’t like emerging markets.High yield spreads are tight, but high yield fundamentals appear reasonably strong, benefiting from the excess that’s developed in the loan space and the private credit space. We focus on more senior structures in our high yield positions.Q: How would you sum up the outlook for markets and for our Income Strategy?Ivascyn: A key element of generating returns is to thoughtfully respond to unanticipated market volatility, such as what we’ve seen this month. We have a consequential election this year in the U.S., and there has been significant election and geopolitical uncertainty all over the world so far this year. Markets remain fixated on any signals in the macro data, contributing to potential volatility. In addition, we are witnessing market disruption from artificial intelligence and other forms of technological innovation.The approach of the Income Strategy in this environment is to not only generate a responsible and attractive yield, but also position the portfolio with sufficient liquidity and quality to stand ready for what could be some very interesting quarters across financial markets. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

PIMCO: Income Strategy Update

Central banks, notably the US Federal Reserve (Fed), are expected to lower interest rates in the closing months of 2024, which will inevitably affect fixed income markets. At Fidelity International, we think that income-seeking bond investors will, therefore, need to reassess their allocations to the asset class and position their portfolios for a shifting policy landscape.When trying to judge the direction of interest rates, it’s important for central banks to look ahead as well as back. Interest rate decisions work with a lag, meaning that policymakers need to adjust borrowing costs 6–12 months in advance of any potential change in economic conditions.As such, assessing forward-looking indicators is vital when building a complete picture of the interest rate pathway. However, less than 50 basis points of Fed rate cuts are expected before the end of 2024 – a number that, judging by labour market and consumer data, fails to price in risks to growth.<h2 data-block-key="35sdc">Assessing labour-market trends</h2>As US inflation now appears to be under control, with encouraging consumer-related data for June 2024 underpinning rate-cut expectations, the Fed’s focus is shifting towards the labour market. Yet, non-farm payrolls survey data is proving an increasingly unreliable indicator of employment levels, mainly as response rates have fallen to a 30-year low. Instead, the government and education sectors are propping up the numbers.In our view, this employment data fails to capture input from small- and medium-sized companies that are overwhelmingly thinning the size of their workforce. Should this trend start to translate, as it often does, to the wider US economy, we are likely to see an acceleration of the cutting cycle currently priced by markets as the Fed is forced to act faster than anticipated.<h2 data-block-key="2v28b">Consumers reflect the actual health of the US economy</h2>The aforementioned US consumer remains the key driver of short- to medium-term growth. At present, though, we feel there is still the risk that spending will slow. For some time now, consumers in the lower income brackets have been under pressure, with a sharp increase in homelessness and poverty rates. Furthermore, there has been a rise in the number of people supplementing their incomes with two jobs.Accordingly, when trying to establish an accurate picture of US economic health, our focus is on middle- and upper-income earners who represent a significant element of the discretionary spending statistics. And our analysis reveals further signs of stress. This was indicated in a recent consumer confidence report that had reached a level commensurate with a recession despite headline US growth remaining positive.<h2 data-block-key="1up5c">Positioning and opportunities</h2>Against this backdrop, it might be prudent for income-seeking bond investors to be similarly forward-looking when seeking opportunities. For instance, participants in the US could seek potential returns from duration while identifying income opportunities from more diversified portfolios. The US corporate bond market has been surprisingly strong in 2024, and there is still value in US government bond yields, particularly in medium and longer-dated issuance (5–7 years), based upon our assessment of the risks to the US economy over the next six months.In addition, tactically long-duration positions in territories that have embarked on their rate-cutting cycles, such as the eurozone and Canada, could be adopted. As US market volatility is expected to rise as we approach the US presidential election, investors may also consider global income strategies beyond the US dollar bond market.As mentioned, the European Central Bank has already started to reduce interest rates, and we have identified bond opportunities in Europe to generate real returns while adding diversification to global income strategies. By way of an illustration, European credit spreads have widened on the back of recent election-related volatility, and demand remains strong, with real yields at their highest levels in around 20 years.Finally, currency-hedging strategies could be significant, as shifting interest rates may impact currency valuations, affecting the attractiveness of various fixed income strategies. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: A progressive mindset – analysing the trends as rate cuts loom

<h2 data-block-key="tembo">What happened</h2>The Bank of Japan (BOJ) brought the benchmark interest rate to around a quarter of a per cent, up from the tight range of zero to 0.1 per cent on 31 July. In a step change, the bank appears to be more guarded against prices racing higher, than against the risk of growth losing momentum. It sees the consumer price index (CPI) rising at 2.1 per cent next year, 0.2 percentage point higher than in previous projections and above its two per cent target.The bank also announced further steps to reduce Japanese government bond (JGB) purchases - a hallmark of its ultraloose policy of the past decade. It will cut these purchases gradually - by JPY 400 billion each quarter - to around JPY 3 trillion (USD $19 billion) in March 2026, which will reduce the central bank’s JGB holdings by between seven and eight per cent. However, the bank has reserved the option to slow this down if yields spike, and will conduct an assessment next June for plans beyond the first quarter of 2026.Hanging over the big announcement was the yen’s recent weakness. A softer yen means more expensive imports for Japan. While exchange rate stability is not part of the BOJ’s mandate, Governor Kazuo Ueda admitted that the yen is having more influence over domestic inflation than before, which helped build the case for a rate hike in July.<h2 data-block-key="35sdc">Interpretation</h2>With import prices rising, and wages and prices tracking each other more consistently, the timing of the BOJ’s decision shouldn’t come as a surprise. But the bank’s forward guidance was more hawkish than markets expected, signaling further hikes down the road if prices prove to be sticky. Speaking after the policy meeting, the governor refused to put a ceiling on the policy rate at 0.5 per cent.One explanation for the BOJ’s stance is that real rates are still very low, even after July’s hike. Financial conditions also continue to be accommodative, which is probably why the governor sounded relaxed about the potential economic side-effects of his decision. Only two of the BOJ’s board members dissented to the rate hike. The only dovish outcome was the unwinding of JGB purchases. The timeline is long, and the BOJ retains some flexibility over its implementation.<h2 data-block-key="2v28b">Outlook</h2>The door is now open for further hikes. But just how fast and steep the BOJ will hike depends on inflation’s trajectory (Ueda has been assiduously data-dependent). That in turn hinges on yen weakness and imported inflation - don’t underestimate the possibility of the BOJ speeding up interest rate increases if the spread between Japanese and US yields widens significantly again.We are more optimistic on the virtuous cycle between wage growth and higher prices in Japan. That will likely be sustained, and therefore imply a higher neutral rate for the country. Should the wage-price cycle gain momentum, the BOJ may need to hike more - just to keep inflation in check at that two per cent target.<h2 data-block-key="1up5c">Asset allocation views</h2>Fidelity Solutions &amp; Multi Asset currently has an overweight view of Japanese equities as Japan’s structural story remains intact. It has turned a corner from disinflation and corporate governance is improving. The BOJ may continue to hike gradually to tame inflation. However, we remain neutral on USDJPY because the BOJ’s policy normalisation alone won’t be enough for a yen rally. That would require more aggressive easing by the US Federal Reserve. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: Emboldened BOJ takes hawkish tilt

<h2 data-block-key="tembo">Reasons for the recent rally</h2>The last two-week rally was primarily led by top-cap stocks amid weakness in the Japanese yen and rising long-term interest rates in Japan.In fact, the Bank of Japan’s (BoJ) decision at the Monetary Policy Meeting (MPM) in June to un-change the policy rate of 0-0.1% and to make a detailed plan to reduce the Japanese government bond (JGB) purchases by the next MPM in July2 reduced expectations for early monetary tightening, sending the Japanese yen lower, below the 160 level against the US dollar.At the same time, the market started to price in the quantitative tightening, sending the 10-year Japanese Government bond (JGB) yields higher, above 1%. Against these backdrops, top-cap financial and export-oriented companies were favoured.<h2 data-block-key="35sdc">Outlook</h2>Looking ahead, given the momentum the rally this year, we believe that market could take a pause.That said, we maintain a constructive view on the Japanese equity market thanks to the ongoing structural changes in Japan. We continue to believe the scope for stock selection is likely to widen, unearthing unique investment opportunities and prompting the rotation into laggards.For the Japanese yen, the exchange rate is admittedly subject to the US inflation and the resultant US Federal Reserve’s (Fed) path on interest rate cuts. The higher-for-longer situation has put substantial downward pressure on the Japanese yen so far, but we continue to expect it to ease later this year.In fact, the BoJ has already started policy normalisation from the unconventional ultra-loose monetary measures amid improving macro backdrops. Also, the US Fed’s monetary policy pivot is finally coming into sight of us. This could lead to a strengthening of the Japanese yen in the future.At the same time, the yen’s upside risk, which could materially hurt exporters’ earnings, should be limited, considering the current interest rate gap between the US and Japan. The high interest rate scenario like the US is also unlikely given the level of the consumer price index (CPI) – 2.8% as of May. The recovery of the Japanese yen should ease inflation pressure, which currently suppresses household consumption.<h2 data-block-key="2v28b">A long-awaited wage-price spiral reviving domestic demand is coming closer to reality</h2>Furthermore, this year’s influential “Shunto” spring wage negotiations yielded higher wage rises than last year, which finally exceeded the current inflation rates.On the other hand, Japanese companies have been overcoming the deflationary norm. According to the June BoJ’s Tankan survey, Japanese companies have been increasing prices for the last three years. This is almost the fast-ever sustained price hikes for decades.Such norm changes should help Japanese companies to improve margins and sustain healthy earnings growth, allowing them to distribute increasing wealth to their employees. We believe that a long-awaited wage-price spiral reviving domestic demand is coming closer to reality.We also expect the Japanese company’s robust capex trend to continue, given the solid earnings trend combined with the much-needed demand for digital transformation and automation in the ageing society.All in all, Japan is on track for a significant shift from the lost three decades of economic/price/wage stagnation to a normal economic environment with positive growth.At this moment, the market focus concentrates on near-term macro factors, namely rising interest rates and the weakening yen.Towards later this year, we expect investors to eventually try to capitalise on the ongoing structural changes by broadening investment opportunities and looking into individual companies’ fundamentals and competitive advantages. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco’s Commentary: Nikkei 225’s historical high again. What’s next?

<h2 data-block-key="tembo">Investment implications</h2><ul><li data-block-key="f5cr5">While the victory of Modi is narrower than expected, their ruling party is still in the majority, therefore the ongoing economic reform and policies shall continue.</li><li data-block-key="69nn4">We anticipated policy continuity in India, as evidenced by the Prime Minister&#x27;s post-election speech, where he reaffirmed the government&#x27;s commitment to support the electronic manufacturing, semiconductor, defense, green energy, EV, and digitization sectors, coupled with efforts to make India the third-largest economy in the world.</li><li data-block-key="2a0an">Fundamentally, India remains in good shape, with positive high-frequency data and an estimated GDP growth of 8.2% for FY24.</li><li data-block-key="4vvfo">It is crucial to continue focusing on our bottom-up, fundamentally driven stock selection approach, as this is much more important in the current market environment.</li></ul><h2 data-block-key="35sdc">Investment themes – India’s multi-year secular growth</h2>Consumption’s rapid growth<ul><li data-block-key="71et3">Witnessing an inflection point for discretionary consumption in India, as the middle class expands and their purchasing power increases.</li><li data-block-key="42all">India is poised for a consumption explosion, supported by a rising population and growing GDP per capita.</li><li data-block-key="fg4bf">Domestic-oriented sectors like transportation, hotels, jewelry, and automotive are expected to benefit from the rising incomes of Indian consumers.</li></ul>Manufacturing renaissance<ul><li data-block-key="4c9a">The government&#x27;s commitment to attracting investments and promoting domestic manufacturing, exemplified by initiatives like Make in India and Production-linked Incentives schemes, further solidifies the positive outlook for India&#x27;s manufacturing sector.</li><li data-block-key="3l6vm">India has successfully cultivated a manufacturing renaissance, positioning itself as a key global partner and benefiting from worldwide supply chain relocation.</li><li data-block-key="b9t3n">Global dynamics have encouraged multinational companies to expand production and establish factories within India, further bolstering the country&#x27;s manufacturing capabilities.</li></ul>Financial transformation<ul><li data-block-key="4t7ri">India&#x27;s financial transformation, fueled by increasing digitalization, presents significant growth opportunities for the country.</li><li data-block-key="91odt">As more individuals gain access to digital services and financial inclusion expands, it paves the way for enhanced economic participation and consumption.</li><li data-block-key="fl7hi">The rise of e-payment systems, retail credit, and global business services hubs have been tangible manifestations of this financial transformation.</li><li data-block-key="f8rv1">The continued advancement of India&#x27;s digital financial infrastructure will pave the way for even greater growth within the financial services industry.</li></ul> Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco’s Commentary: India Equities’ outlook after Election

Is this the post-pandemic normalisation we were waiting for?Economic activity has held up this year as labour markets and consumer demand find a healthier balance. That shift towards equilibrium has partially soothed markets’ primary concern: that economies - and inflation - were proving too resilient to central bank tightening measures.These improving fundamentals have shaped our thinking around three main themes heading into Q3.The first is that now is a good time to take equity risk.The second is China. It’s unwise to take your eye off the world’s second largest economy, even if investors have withdrawn from its shores for now. Policymakers appear more willing to support the economy, helping to establish a period of ‘controlled stabilisation’.Finally, we’re thinking tactically. As economies diverge and new prospects open up, investors will want to make use of their active armouries.Soft landing, risk onThe story of 2024 so far has been one of solid economic fundamentals. Signals suggest that the US still leads the pack, but Europe and the UK appear to be turning a corner, while continued stabilisation in China should mitigate its drag on the global economy.<img class="fullwidth" src="/media/images/T1_712_EN.2e16d0ba.fill-945x567.jpg" alt="T1_712_EN.jpg" />Sticky inflation continues to temper expectations, however. This time last quarter, we were concerned that a stubbornly tight labour market might force the US Federal Reserve to keep rates higher for longer, which would eventually slow 2024’s positive momentum.Labour market reports for June looked hotter than the Fed would like, but softening inflation in May adds to our growing confidence that price rises won’t reaccelerate from here. The range of outcomes when it comes to the magnitude of potential rate cuts by the Fed have narrowed significantly since the start of the year. We think that the bar for the cutting cycle to start remains high but recent progress on the inflation front has been encouraging.A soft landing is the most likely outcome - and that’s a good thing for global growth and investors who are willing to take on additional equity risk.Controlled stabilisation in ChinaWe continue to believe that 2024 will be a period of &#x27;controlled stabilisation&#x27; for China.Policymakers are attempting to reduce the dominance of the property sector and rebalance the economy towards higher-end manufacturing and consumption.It has taken some time for investors to adapt to this change - especially following the anaemic comeback of the economy after the pandemic turned appetite away from China - but sentiment has begun to re-establish, if at low levels. China’s economy is normalising as demand for goods and services gradually improves.Policy shifts are starting to bear fruit in certain corners of China’s economy. The most obvious is manufacturing, supported by a resurgence in overseas demand. There are some upbeat signals from consumption too, led by the rebound in holiday travel.This stabilisation is good news for China. It also bodes well for other economies in the region and for investors, who will be breathing a sigh of relief over the retreat in negative sentiment that pervaded the country in the first half of the year.Time to be tacticalSolid fundamentals and a strengthening China mean we are adding risk to our portfolios. But doing so requires a nose for nuance: we expect divergence between regions and sectors is likely to be high in Q3, which means being tactical with that risk.One point of divergence is monetary policy across developed markets. The eurozone has cut rates ahead of the US, as we expected. While this lays some groundwork for Europe to build on the positive momentum it’s established over recent months, the risk of a devaluing euro means that the European Central Bank’s (ECB) easing path from here is closely tied to the Fed’s. We think it’s unlikely the ECB will cut much further without the Fed following suit.Conditions look ripe for US and Japanese equities to continue their strong run. Robust growth and healthy earnings in the former, coupled with structural tailwinds and corporate reforms in the latter, go some way to justifying rising valuations in these regions. But they don’t go all the way - in the US in particular, we’re looking beyond frothier parts of the market to uncover value. Mid-caps offer strong long-term growth potential at a reasonable price, and they should also prove resilient to higher rates.<img class="fullwidth" src="/media/images/T2_712_EN.2e16d0ba.fill-1181x645.jpg" alt="T2_712_EN.jpg" /> On a sectoral basis, it’s hard to look beyond the earnings momentum of technology companies, and we also like the positive earnings revisions of US and European financials.We like convertible bonds, which can benefit from any continued momentum in equities and can offer some buffer if credit spreads don’t widen substantially. It’s a segment of the market that’s becoming increasingly populated by higher quality issuers, including some from attractive growth sectors like technology.It’s finding seams in the market like these which could lift portfolio performance this quarter. The global economy now marches to a positive beat, but diverging policy will breed differentiating performance across assets. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s 2024 Q3 Investment Outlook: Easy does it

So far in 2024 the experience of holding US bonds has been one of unrequited anticipation. Back in December, US Federal Reserve Chair Jerome Powell dropped heavy hints that the long-awaited ‘pivot’ was coming and the Fed would soon start to cut interest rates.Since then, the persistence of US inflation has caused a delay. Non-US developed market bonds meanwhile have outperformed as growth elsewhere has weakened and inflation indicators have cooled. Spreads have reached extreme levels, and the consensus is that this state of affairs will continue. In our view, the stage is set for a period of US bond outperformance when, as so often happens, the consensus is confounded.Of course, there needs to be a catalyst to shift the narrative. Here are three candidates. ONE: US core inflation continues to fallInflation for US core consumer prices reached a three- year low in April and posted the first month-on-month fall since October. There are good reasons to expect continued downward momentum in both core services and goods inflation.An important component of core services inflation is owners’ equivalent rent (OER), which calculates what someone who owns a property would pay in rent to live there. While it isn’t a direct measure of what a homeowner actually pays, it nonetheless affects the inflation figures and so influences monetary policy.Leading indicators suggest OER should continue to fall: Chart 1 shows the New Tenant Repeat Rent (NTRR) index, which is based on the leases of tenants who have recently moved house and as such tends to lead changes in overall average rents. <img class="fullwidth" src="/media/images/Picture13.2e16d0ba.fill-780x440.jpg" alt="Picture13.jpg" />Prices for core goods also remain well above levels consistent with real input cost inflation. So any slowdown in demand should also support continued disinflation, which in turn would give the Fed more space to cut rates. TWO: US consumers break under pressureThat slowdown in demand looks to us to be a question of ‘when’ not ‘if’. There is a shrinking portion of Americans who are able to keep spending in the way they’ve been doing since the pandemic. The stress of consumers at the lower end is well known, but those on middle-incomes are seeing real income growth at just 25 per cent of 2023 levels, as well as depleted excess savings and ongoing cost of living pressures.<img class="fullwidth" src="/media/images/Picture14.2e16d0ba.fill-780x446.jpg" alt="Picture14.jpg" /> As people have felt the squeeze of rising costs there’s been a steady increase in people working multiple jobs to keep pace. But that can’t continue indefinitely. THREE: The labour market takes a turn (and proves it’s less robust than people think)Although most recent employment data has surprised to the upside, leading indicators of employment growth now point to a slowdown. These include the National Federation of Independent Business (NFIB) small business survey of employment intentions which, barring a recent small uptick, has been in a downtrend going back more than six months, as well as the quits rate (those who have chosen to leave their job). <img class="fullwidth" src="/media/images/Picture15.2e16d0ba.fill-780x443.jpg" alt="Picture15.jpg" />The recent employment strength reflected in non-farm payrolls has been dominated by non-cyclical sectors like education, government employment, and parts of healthcare. Most other sectors are flat or shedding jobs.Part-time employment has been on a sharp upward trend relative to full-time employment. The speed of this change is similar to what was seen in 2001 and 2007 and has historically led to a broader employment slowdown. Rates are too restrictiveOur thesis is that the neutral real policy interest rate is far below where we are right now. We think the Fed will need to carry out cuts at a speed greater than currently priced by the market as inflation falls and real policy rates become more restrictive as a result. The speed of disinflation will dictate the speed at which these cuts happen, absent any shocks to the growth and labour market outlook which would accelerate the pace.The wait for the cutting cycle to begin may have dragged on, but reasons to expect the current consensus will be upended are only growing stronger. High quality US bonds should fare well if and when this shift occurs. Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds &gt; Bond Funds】to find out more! Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

So far in 2024 the experience of holding US bonds has been one of unrequited anticipation. Back in December, US Federal Reserve Chair Jerome Powell dropped heavy hints that the long-awaited ‘pivot’ was coming and the Fed would soon start to cut interest rates.

Fidelity’s Commentary: Three reasons to keep an eye on US bonds

China’s equity market has seen positive momentum so far this year, rebounding by over 30% since the trough in January. Both onshore and offshore Chinese equities have recorded positive returns year-to-date, with materials, industrials, and communication services sectors in positive territory.China’s economy has also shown resilience. The country’s GDP grew by 5.3% year-over-year in Q11, surpassing market expectations. We expect the recovery to continue through to Q2 and are seeing ongoing signs of this from economic data and travel indicators. Industrial production has had robust growth year-to-date, and exports have returned to positive territory. The positive factors that drove economic stabilization and upward momentum in the first half of 2024 are expected to continue into the second half.China&#x27;s economic recoveryLooking ahead, we anticipate a continued recovery in China&#x27;s exports and domestic demand over the second half of the year. On the manufacturing side, there was a positive year-on-year change in exports in the first quarter of 2024, reflecting the increased business activity and production momentum of Chinese companies. Exports to ASEAN, Latin America, and Africa have risen, suggesting that Chinese companies have been expanding their global market reach. We believe the increase in exports marks an encouraging improvement in both domestic and overseas demand.<img class="fullwidth" src="/media/images/Table1_EN.2e16d0ba.fill-1285x643.jpg" alt="Table1_EN.jpg" />In terms of consumption, key indicators are moving in the right direction, including retail sales, travel data, and automotive sector performance. Consumer confidence is also rising and retail sales in China have had a close to 5% year-on-year increase2. The e-commerce sector in particular has expanded rapidly. We expect this consumption momentum to continue for the rest of the year. After China’s reopening, we’ve seen robust holiday and travel spending data, including a 13.5% year-on-year increase in tourism revenue3 during the recent Labor Day holiday, compared to pre-pandemic levels. Looking ahead, we expect a steady increase in consumption for the upcoming holiday season.The government’s monetary policy stance has been supportive, and we expect further cuts to the reserve requirement ratio (RRR), as well as interest rate cuts to accommodate faster government bond issuance. We believe these measures will provide additional stimulus to help revitalize China’s economy.Potential investment opportunitiesGoing forward, we see ample investment opportunities in China equities centered around the themes of reorganization of the global supply chain and the electrification and energy revolution. We continue to expect these trends to benefit Chinese companies in 2H 2024.Chinese corporates are poised to benefit significantly by expanding their supply chain and global footprint. In doing so companies can benefit from sustained local demand in overseas markets to capture a larger share of the worldwide customer base. Chinese firms currently enjoy a cost advantage stemming from their large domestic market and economies of scale. We anticipate that these companies will have stronger earnings growth and overall growth prospects in the years ahead. We believe China’s ongoing efforts to strengthen its global market presence will unlock opportunities for investors to engage in the country’s expanding international trade and investment landscape.Chinese companies are also benefitting from the global transition towards clean energy and are likely to play a key role in electrification and energy transformation trends. This is due to their strong presence across the entire green supply chain as well as the cost efficiencies gained from their large domestic market base. An example of one such opportunity lies in a tap changer manufacturer with ongoing overseas expansion plans that aims to build a full-scale industry supply chain. Currently, there are two major tap changer manufacturers globally that account for a large proportion of the overall market share. One is a privately-owned German company, and the other is the Chinese manufacturer. As tap changers are a crucial component in transformers that are seeing rising demand, investing in these companies could allow investors to capitalize on the anticipated surge in interest. We expect companies like this to emerge as key beneficiaries of the power grid upgrade trend.Despite challenges, more clarity lies aheadWe believe investors considering China should also be mindful about potential challenges. The property sector set back in the past few years has put pressure on economic growth. We are seeing policies being put forward to stabilize the property market on a gradual basis and need to wait for some time before we see the impact of these measures. Such policies include guaranteeing the delivery of pre-sold homes, cutting mortgage rates, and enacting minimum downpayment requirements. We anticipate further policy stimulus for the property sector going forward. In terms of the external macro environment, with the highly anticipated US presidential election approaching before the year&#x27;s end, we believe the market can expect more headline news that could result in short-term volatility.China equities are trading at attractive valuationsAt present, China&#x27;s equity market valuations are trading at relatively low levels both in historical terms and compared to developed markets. In fact, the MSCI China Index is currently trading at a significant discount of around 50% relative to the MSCI US Index. We believe this presents an attractive opportunity for investors to potentially capitalize on.<img class="fullwidth" src="/media/images/Table2_EN.2e16d0ba.fill-1285x638.jpg" alt="Table2_EN.jpg" />Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds &gt; Equity &gt; China Equity】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Note:<ol><li data-block-key="69p0b">Goldman Sachs Global Investment Research, April 2024</li><li data-block-key="dpd4s">Retail sales jump 4.7% year-on-year in Q1, showing a stable consumption expansion, Global Times, April 2024, https://www.globaltimes.cn/page/202404/1310676.shtml</li><li data-block-key="dq7ds">China May Day holiday spending shows mixed picture on post-COVID recovery, Reuters, May 2024, https://www.reuters.com/world/china/china-may-day-holiday-spending-delivers-mixed-picture-post-covid-recovery-2024-05-06/</li></ol>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco’s Commentary: 2024 Mid-Year Investment Outlook – China equities

Europe has a far bigger pool of stocks that are currently trading on attractive multiples than the US.<img class="fullwidth" src="/media/images/0612_market_buzz.2e16d0ba.fill-602x582.jpg" alt="0612 market buzz.jpg" />The message from above chart is simple. If you’re looking for value stocks, Europe is a much better hunting ground right now than the US.The rise of the ‘Magnificent Seven’ in the US has created something of a slipstream effect that has dragged along many of the 493 other (less magnificent) stocks in the S&amp;P 500 and pumped up their valuations. Europe has its own version of the Magnificent Seven, dubbed the ‘Seven Wonders’, comprising Hermès, Novo Nordisk, Siemens, LVMH, SAP, ASML and Schneider Electric. But while those seven have, like their US counterparts, outperformed the broader market, their success has not rubbed off on other stocks to anything like the same extent.The result is the S&amp;P 500 has far more stocks on a price-to-earnings (PE) ratio above 30 than the MSCI Europe index. By contrast, the latter has a much bigger pool of stocks with PE ratios lower than 10.Of course, trading on a low PE ratio does not necessarily mean a stock is good value. Earnings could be cyclically overinflated, cash conversion might be poor, the balance sheet could be a mess. But with nearly 200 companies trading on less than 15 times earnings you can find a healthy number that are not only cheap but have good fundamentals. They also look well positioned for a period in which monetary policy is expected to remain relatively tight.These include the cheaper consumer cyclicals, which directly benefit from rising wages, as do some consumer staples in the defensive space. Several financial names also look cheap and should maintain their profitability as long as interest rates don’t fall. There are also a few tech stocks that are starting to see accelerating earnings-per-share growth and which are still on reasonable valuations.It may feel nice to own stocks that all the influencers herald as ‘magnificent’ or ‘wonderful’. The real gems though are found elsewhere.Want to search and invest in related funds?Open the WeLab Bank App and click【Featured Funds &gt; Equity &gt; Europe Equity】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: Europe, not the US, is the place to look for value stocks

SummaryInvestors are waking up to the wealth of opportunities that the Asian economies beyond China offer. Strong structural trends – a favourable demography, a rising middle class, the reorganization of global supply chains and an increased focus on governance – underpin their growth and their increased sophistication. Sustainability concerns have started to being taken more seriously. Asia beyond China is thus an increasingly attractive proposition for investors, including for those already invested in China.<img class="fullwidth" src="/media/images/sky_1.2e16d0ba.fill-1254x836.png" alt="sky 1.png" />The past decades have witnessed the rise of China to second-largest economy in the world, its pivot towards innovation and tech and the emergence of its stock market as an asset class in its own right. Yet, in the shadow of China’s phenomenal development, other economies in Asia have matured and now offer equally interesting opportunities. We believe that the time has come for investors to cast an eye on Asia beyond China.Asia: a continent of megacities and growing affluenceIt’s hard to comprehend the immense size of Asia. The continent comprises around 60% of the world’s population. By 2050, Asia’s population will be equivalent to the size of the world’s population 1990. Two countries – China and India – make up 60% of this population, but they are on diverging demographic paths. China’s population is ageing and declining; India has recently overtaken China as the world’s most populous country (with 1.4 bn people), and has a young and growing population.Asia is an increasingly urban continent. Twenty of its cities harbour over 10 million people. China has 23 cities with over 5 million inhabitants; India currently has seven, but is rapidly urbanising. But megacities dot the landscape beyond China, India and Japan. Other metropoles include Seoul, Manila, Taipei, Bangkok, Jakarta, Singapore, Dhaka, Kuala Lumpur and Ho Chi Minh City.Urbanisation tends to go hand-in-hand with increased affluence, and Asia already accounts for the largest consumer market in the world, both in terms of population as well as in terms of spending. By 2030, it is expected that two out of three global consumers will be Asian.Yet while the first two decades of this century were driven by rise of the Chinese middle class, this decade will be belong to South Asia. Investors should expect the middle classes of India, Pakistan and Bangladesh to deliver 1 bn new consumers by 2030. Asia’s growing affluence is also reflected in its financial wealth, which stands at USD 180.6 trillion (as of 2021), and represents ~40% of global wealth.The dynamism of Asia’s economies beyond ChinaAsian economies beyond China have become major drivers of global growth. They are expected to contribute one third of global growth in 2024. Besides the demographic dividend of their (mostly) young populations, and the above-mentioned emerging consumer base, other structural growth factors are underpinning their economies: the reorganization of global supply chains, technology and increased drive for reform.India is the posterchild of this new Asia. Its young and dynamic population benefits from a STEM-focused educational system. Indian computer scientists and IT specialists are sought after beyond its borders, and lead major global tech firms. The Indian government has furthermore embarked on an ambitious reform agenda, aiming not only to ease business by cutting down the infamous “Licence Raj”, but also to build world-class infrastructure to facilitate trade both within the country and between India and its export markets. India’s efforts are being increasingly recognised. FDI has increased as global companies implement a “China + 1” supply chain strategy, and consider India as a manufacturing location.The geopolitical tensions afflicting the China-USA relations, as well as the disruptions caused by the covid pandemic, have led corporates to also relocate parts of their supply chains to South East Asia. Vietnam, Malaysia and Indonesia have particularly benefited from this realignment of global supply chains – a strong secular trend we don’t expect to abate. Vietnam, given its strategic proximity to China, is rapidly increasing its role in the global supply chain as a lower cost, reliable and quality source of parts, materials and manufactured components; the country is fast becoming a hub for electronics and textile products. Malaysia, Indonesia or the Philippines have attracted investors with political stability and reformoriented governments. Indeed, these economies may end up as the beneficiaries of the continued trade tensions between China and the US: open to trade with both blocks, they will bridge the gaps that have emerged between the two largest economies in the world.These South East Asian economies, but also Taiwan and Korea, are further benefitting from a favourable economic cycle driven by restocking. The Taiwanese semiconductor industry, for instance, has entered a cycle of recovery. The global boom in AI favours Taiwanese and Korean hardware component vendors and chip designers.Another trend investors will welcome is an increased focus on corporate governance. Political leaders in Seoul, for instance, are keen to eliminate the “Korean discount” that opaque governance practices have burdened its stock market with. A follow-through implementation of their “Value Up” agenda should improve the attractiveness.Sustainability, finally, is being taken increasingly seriously across Asia. In Bangladesh, farmers are switching from raising chicken to raising ducks, given the rising risks of major floods that climate change is bound to inflict on the riverine country. Countries across Asia are focusing on the energy transition. Taiwan is centering its efforts on increasing renewable energy (solar, offshore wind) in its energy mix, thus creating growth opportunities for companies along the value chain (such as key material and component makers). Traditional industries with high carbon emissions, like the shipping and airline industries, are decarbonizing by adopting new technologies and using sustainable aviation fuel (SAF), benefitting associated industries.Opportunities for international investorsInvestors are recognizing the attractive prospects of Asia’s new economic powerhouses. Assets under Management in Emerging Markets or Asia ex China strategies have reached over USD 12.5 bn (in January 2024). As economic paths diverged between China and its Asian neighbours, so did their stock markets. Indices excluding China have fared better over the past three years, highlighting the decoupling of China and other Asian economies.AUM growth of EM and Asia ex China funds (USD billion)<img class="fullwidth" src="/media/images/3.2e16d0ba.fill-986x704.jpg" alt="3.jpg" />Source: JP Morgan Equity Research, 31. January 2024.MSCI Emerging Asia compared to MSCI Emerging Asia ex China – since end of 2020 (USD)<img class="fullwidth" src="/media/images/4.2e16d0ba.fill-988x661.jpg" alt="4.jpg" />Source: Bloomberg, MSCI, Allianz Global Investors, as of December 31, 2023. The above is for illustrative purposes only and is not a recommendation or advice to buy or sell. Past performance, or any predication, projection or forecast, does not predict future returns.Investors should not interpret this decoupling as a rejection of China’s stock markets – instead, we believe they should recognize that China has truly become its own asset class following its own economic trends, but adding investments in “Asia ex China” will help to balance and diversify their portfolios.As with all investments in Emerging Markets, “Asia ex China” investments come with certain risks. While the Asian economies stand to benefit from the geopolitical tensions between China and the US, this also makes them vulnerable to volatility in the Chinese economy and to changes in the US interest rate cycle. Domestic consumption is bound to become a major pillar in these economies, but over the short term demand may in certain cases fall behind expectations.<h4 data-block-key="f51cs">Want to search and invest in related funds?</h4><h4 data-block-key="5hmbq">Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; Asian Equity】to find out more!</h4><h4 data-block-key="9v05u">Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!</h4>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Allianz’s Commentary: Opportunities in Asia beyond China

<img class="fullwidth" src="/media/images/stock_photo.2e16d0ba.fill-1254x836.png" alt="stock photo.png" />1-minute Market BuzzOptimism is abundant in Japan, where the economy has emerged from more than two decades of recessions and stagnation, with mild and broad-based price increases. However, the Bank of Japan (BOJ) is treading on eggshells with its pace of policy normalisation, after raising interest rates earlier this month for the first time in nearly two decades. Hiking too fast could dampen growth and affect financial stability.Following consumer price gains, many industrial unions have won pay rises for workers in this year’s “Shunto”, or spring wage negotiations. Fidelity believes that a virtuous wage-price cycle is likely to be sustainable from here, ultimately leading to a higher neutral rate for Japan. The BOJ may need to raise its policy rate further to adhere to the 2 per cent price stability target. <img class="fullwidth" src="/media/images/img_1.2e16d0ba.fill-1666x788.png" alt="img 1.png" />Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; Asian Equity】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fidelity’s Commentary: Japan’s brave new world (2024 Q2 Asia Investment Outlook)

<img class="fullwidth" src="/media/images/Buzz_May_1.2e16d0ba.fill-1254x836.png" alt="Buzz_May_1.png" />The election of India will be conducted from 19th April – 1st June and the final results will be counted on 4th June with the new administration sworn in by mid-June.Initial polls and recent local elections suggest the possibility of a landslide by the BJP and its key allies, also known as The National Democratic Alliance (NDA)1.A landslide win by NDA that gets close to 400 seats could lead to a very positive equity market reaction. Domestic sectors such as consumer staples &amp; discretionary, industrials, infrastructure, public sector undertaking (PSU) and financials are likely to benefit and could outperform.Invesco expects an outright BJP victory with over 272 seats and that Prime Minister Modi remains in power2 (Base Case Scenario).Invesco believes that, India’s stock market valuations are supportive for the following three reasons:1.Strong corporate earnings growth<ul><li data-block-key="53qkp">Strong demand from the manufacturing and consumer discretionary industries is increasing pricing power and driving earnings growth.</li><li data-block-key="2u6tj">Corporate earnings across all industries continue to show an upward trend, with return on equity (ROE) reflecting growth.</li><li data-block-key="f0khl">It is expected that by fiscal year 2024, the ROE of Indian companies may hit a ten-year high of 15%. Rigorous and orderly expansion is more likely to push ROE to continue to rise.</li><li data-block-key="62ad7">Indian companies have experienced strong profit growth, with average earnings per share growth of 22% over the past five years. Earnings are currently experiencing a significant cyclical uptrend.</li><li data-block-key="59orh">The earnings per share growth of Indian companies is much higher than that of most developed economies and emerging markets and is expected to reach about 17% by 2024.</li><li data-block-key="4hce6">Historical trends confirm that India&#x27;s economic growth can be translated into substantial corporate profits.</li></ul>2.Strong corporate fundamentals<ul><li data-block-key="2d4aq">Over the past decade, Indian companies have been able to manage their balance sheets effectively and maintain low-leverage positions, thereby benefiting from demand-led growth.</li><li data-block-key="7tbsm">The debt-to-equity ratio of Indian companies is at a historical low of about 0.5 time</li></ul>3.Positive macro factors<ul><li data-block-key="47fcu">Structural shifts in the Indian economy over the past decade have brought confidence to the market.</li><li data-block-key="4mo8o">India’s growth upcycle is expected to generate strong earnings over the next three to four years.</li><li data-block-key="bvgej">The expected decline in interest rates will boost market confidence in India&#x27;s future cash flows, while its strong relative growth will further benefit this positive outlook.</li></ul>Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; Asian Equity】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Source:<ol><li data-block-key="10blm">LokSabha Opinion poll survey: Hattrick for PM Modi-led NDA with 335seats,predicts Mood of the Nation, INDIA blocat 166-India Today.</li><li data-block-key="fec3h">Latest opinion polls for 2024 Lok Sabha elections by India Today, ABP, India TV, Times Now.</li></ol>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco’s outlook: a supportive view on India’s stock market

While ChatGPT captured the public’s imagination, the staid manufacturing sector was already putting AI to work – potentially reaping more benefits than any other sector, according to McKinsey. Find out how tapping AI is a natural step in the evolution of industrial automation.<ul><li data-block-key="vfmh">In the grand tradition of Henry Ford and Bell Labs, manufacturers are using cutting-edge AI tools to automate tasks, predict disruptions and make new discoveries.</li><li data-block-key="8nase">Three case studies: a design software firm helps users build AI-powered digital twins; a high-tech manufacturer leverages AI to build specialty electronics for clients; and an internet giant uses AI to discover previously unknown materials for building new technologies.</li><li data-block-key="34uh1">In the search for tomorrow’s manufacturing leaders, we look for firms that are embracing AI to uncover patterns in complex and interwoven sets of data, unlocking new efficiencies.</li></ul><img class="fullwidth" src="/media/images/image_6.2e16d0ba.fill-1254x836.png" alt="image (6)" /><h2 data-block-key="4kes3">In the news: AI is transforming industrial automation</h2>Manufacturers have long used automation to improve operational efficiency, decrease defects, reduce factory downtime and maximise productivity. Decades ago, research and development companies such as Bell Labs—and trailblazing individuals such as Henry Ford—were on the cutting edge. More recently, 3D printing, robotics and computer vision have helped upgrade production methods across many industries—from aerospace to metals &amp; mining. Today, artificial intelligence (AI) is leading the way, with digital twins*, generative AI and other technologies transforming industrial automation in ways Henry Ford could never have imagined. Here are three notable examples.<h2 data-block-key="b55it">Case studies: Using AI in new ways to aid manufacturing and material discovery</h2><h2 data-block-key="q4o9">A design software provider (“DSP”) offers proprietary digital twin software1</h2><h2 data-block-key="5u4cf">What themes, sectors or regions would offer opportunities and potential risks?</h2>Although AIG bond spreads remained tight through most of 2023 on the back of the favourable macro backdrop in the region described earlier, there are markets with potential value, such as South Korea and Japan. Fidelity also sees better value in shorter-dated and high-quality bonds across the region, where Fidelity may earn attractive returns due to the higher base rate environment without assuming excessive credit risk. With many Asian countries potentially reaching their inflation peak, some central banks have paused their tightening cycles and begun showing signs of turning dovish. This opens the door for opportunities in the local currency markets, such as local currency duration or local currency bonds that offer an attractive yield pick-up when hedged back to the US dollar because of the potential shifts in interest rate differential.<h2 data-block-key="4i9p7">A manufacturing services company (“MSC”) leans into AI2</h2>MSC is an electronics manufacturing services company that helps customers design and build electronics products. Among MSC’s many innovations are the AI- and machine learning based detection systems used on the company’s factory floors. The systems help identify defects quickly and accurately, saving costs and enhancing efficiency—and they get more intelligent over time. The company also uses AI to optimize production processes, reducing redundancies and improving throughput. MSC even helped design an automated barista system that uses AI to serve coffee and cocktails.<h2 data-block-key="e5do3">A large internet company (“LIC”) uses AI to discover millions of new materials for high-tech manufacturing3</h2>Researchers at LIC used AI to discover 2.2 million new crystal structures, including an estimated 380,000 that are sufficiently stable for synthesis and further research. This significantly expands the number of known stable inorganic materials by nearly tenfold. In the past, materials scientists identified new crystals through a time- consuming trial-and-error process. The announcement demonstrates how AI can significantly accelerate the discovery process for new materials, which can be a key enabler of the next hardware or industrial breakthrough.<h2 data-block-key="9ovor">Why it matters</h2>Today, industrial manufacturing is undergoing a sea change powered by AI innovations. Not only do most companies already recognise AI’s potential to improve their operations (Exhibit 1), but the evidence shows that it’s working. A recent survey by McKinsey suggested that manufacturing is the function that may be poised to reap the biggest benefits from AI adoption. Of the hundreds of organisations actively using AI, 55% anticipated at least a 10% decrease in manufacturing costs, while 66% expected at least a 5% increase in manufacturing revenue.4Exhibit 1: Most companies are already tapping AI’s potential<img class="left" src="/media/images/Capture.2e16d0ba.fill-779x650.png" alt="Capture" />Source: Samsara 2023 State of Connected Operations Report, March 2023.*A digital twin is a virtual replica of a physical object, operation or process, frequently powered by AI and continuously updated with a steady flow of data.1 Architect Magazine, February 20212 Bisinfotech, November 20233 Venturebeat, November 20234 McKinsey &amp; Company, August 2022Want to search and invest in related funds? Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; AI and Tech】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit,  and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How AI Is Powering a New Era of Industrial Automation?

Asian Investment Grade (AIG) bonds have diversified and added value to investment portfolios by delivering attractive risk-adjusted returns during periods of deteriorating growth. Current yields offer substantial buffers against further monetary rate rises or credit spread widening.<img class="fullwidth" src="/media/images/Market_Buzz_FEB_15_Content_Visual.2e16d0ba.fill-1254x836.png" alt="Market Buzz_FEB 15_Content Visual" /><h2 data-block-key="duknc">What is the investment outlook for Asian Investment Grade in 2024, given the prevailing macro environment (slowing global growth, geopolitical, higher rates)?</h2>Fidelity remains broadly constructive on AIG bonds in 2024, as the fundamentals and technicals of the asset class remain supportive. This offers strong defence against market headwinds such as a potential global recession. Asian economies remain resilient, too, amid slowing global growth, higher policy rates, and geopolitical tensions. In addition, much of the global growth remains in Asia. Some central banks in the region have started to show signs of a pivot from tightening monetary rate policies, and Asian countries’ ample foreign exchange reserves provide them with greater resilience amid the US-dollar strengthening. While developed markets continue to deal with elevated and sticky inflation, Asia has better control over inflation due to its role in the global supply chain and its raw materials self-sufficiency. Also, Asia has the largest growing markets, such as China and India. There are risks in ever-changing markets, but AIG bond issuers’ solid credit profiles – with healthy leverage ratios and ample liquidity buffer – provide investors with a more defensive way to participate in Asia’s growth potential and offer diversification during periods of deteriorating growth.<h2 data-block-key="6tf2g">What could surprise markets in 2024, either positively or negatively?</h2>Geopolitics will remain a wildcard for 2024. Any unexpected outcomes in the US presidential elections could surprise the market on the downside. In addition, further escalation in the Russia-Ukraine war ongoing since February 2022, or the recent intensification in the Israel-Hamas conflict, could trigger additional market weakness.China’s transition from the old growth-focused economy – which leaned towards manufacturing and the highly leveraged real estate value chain – to a new economy that prioritises domestic consumption and technology higher up on the value chain could lead to market volatility in 2024. However, Fidelity believe that new investment opportunities may arise from this structural change.<h2 data-block-key="1bje">What themes, sectors or regions would offer opportunities and potential risks?</h2>Although AIG bond spreads remained tight through most of 2023 on the back of the favourable macro backdrop in the region described earlier, there are markets with potential value, such as South Korea and Japan. Fidelity also sees better value in shorter-dated and high-quality bonds across the region, where Fidelity may earn attractive returns due to the higher base rate environment without assuming excessive credit risk. With many Asian countries potentially reaching their inflation peak, some central banks have paused their tightening cycles and begun showing signs of turning dovish. This opens the door for opportunities in the local currency markets, such as local currency duration or local currency bonds that offer an attractive yield pick-up when hedged back to the US dollar because of the potential shifts in interest rate differential.Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Bond and Money Market &gt; Asia Bond】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit, and are not protected by the Deposit Protection Scheme in Hong Kong.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Is the outlook of Asian Investment Grade bonds positive?

Markets have rebounded strongly in 2023 leaving investors wondering if they have missed the boat. However, looking underneath the surface reveals a lot of compelling opportunities still exist. These opportunities also come at a time when BlackRock think traditional diversification can make a comeback. This excites BlackRock as multi-asset income managers as it means can seek compelling income and return with improved diversification.Here are a few areas we favor in our multi-asset income portfolios:<h3 data-block-key="69qsc">1. Undervalued dividend stocks complemented with covered calls</h3>Much ink has been spilled on the concentration of this year’s equity rally, which has been led by a handful of mega-cap tech stocks. What’s gotten much less attention is the potential appeal of other types of equities. Valuations still look very reasonable for dividend stocks. One way to look at this is breaking the equity universe into dividend quintiles, which shows higher yielding stocks are cheap relative to historical valuations and relative to growth stocks (Chart 1). This means the bar to exceed expectations is much lower in these pockets of equity markets, and they should benefit more in the case of a soft landing.Chart 1: Forward P/E by Dividend Quintiles – MSCI USA Index<img class="fullwidth" src="/media/images/Picture1.2e16d0ba.fill-624x212.png" alt="Chart 1: Forward P/E by Dividend Quintiles – MSCI USA Index" />Source: Institutional Brokers&#x27; Estimate System (IBES) as of 31/08/2023. Forward P/E multiples represented by IBES estimates, reflecting the consensus earnings per share across sell-side analyst estimates. Indexes are unmanaged and one cannot invest directly in an index.That said, BlackRock also want to make sure they have growth exposures in income portfolios, especially given the importance of tech today. One way BlackRock get access is through covered calls. This means BlackRock sells away some upside potential on individual stocks, which they think makes sense considering today’s valuations, and in exchange get a very attractive income stream. As an example, BlackRock can sell a 1-month 6% OTM call option on Microsoft and receive annualized yield of 11.0%.1<h3 data-block-key="9jash">2. Select opportunities in higher yielding credit</h3>The current yield profile of the US high yield market continues to offer attractive carry at ~8.3% with a strong fundamental profile for the core of the market.2 However, index levels don’t tell the full story as dispersion continues to sit at elevated levels for this market. In our strategies, BlackRock are avoiding the tails. In other words, BlackRock have less exposure to the very tight names (spreads inside 200 bps) and very distressed names (spreads over 800 bps). BlackRock still think there is a lot of value in between, but investors will need to stay selective.BlackRock also think investors should consider owning a portion in European high yield. Relative to the US, it is a higher quality market on average and USD investors get the added benefit of earning approximately 2% more income when hedging back to US dollars.3 We also don’t anticipate a meaningful spike in defaults.<h3 data-block-key="dh46o">3. Higher quality, lower duration bonds</h3>Lastly, a rise in short-term rates has led to much more attractive valuations in higher quality fixed income. A couple of areas that stand out to us, especially in BlackRock more conservative portfolios, include short-term investment grade bonds and collateralized loan obligations (CLOs). Even though BlackRock don’t expect a meaningful rise in rates from here, these markets offer compelling yields with minimal duration risk. BlackRock also like having an allocation to agency mortgage-backed securities (MBS), where valuations have become much more compelling. As the below chart shows (Chart 2), these areas have much higher yields today and may provide investors with strong downside protection versus stocks should volatility rise.Chart 2: High quality fixed income offer attractive risk-adjusted yields<img class="fullwidth" src="/media/images/Picture2.2e16d0ba.fill-624x222.png" alt="Chart 2: High quality fixed income offer attractive risk-adjusted yields" />Past performance is not an indication of future results. It is not possible to invest directly in an index. Yields based on yield to worst. For illustration purposes only. Source: Bloomberg as of 31 August 2023. US Investment Grade bonds represented by the Bloomberg US Corporate Bond Index. US CLO represented by the JPM CLO IG Index. Agency MBS represented by Bloomberg US MBS Index.1 Reference to the company name mentioned herein is for illustrative purpose only and should not be construed as investment advice or investment recommendation of those companies. 2 Source: Bloomberg as of 31 August 2023. Based on the Bloomberg US High Yield Index. 3 Source: Bloomberg as of 31 August 2023. Based on the Bloomberg EUR/USD Hedging Cost Index.Want to search and invest funds with monthly dividend payout?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Featured Funds &gt; View Full Fund List &gt; Filters &gt; Asset Class click &quot;Equity Fund&quot;, &quot;Mixed Asset Fund&quot;, &quot;Bond Fund&quot;, “Money Market Fund”; Payout type click Dividend &gt; View Results】Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

If not cash, then what should investors buy?

In our previous article on AI Investment Strategies – <a href="https://www.welab.bank/en/blog/gowealth_insights/ais-impacts-on-thematic-investment-strategy-part-1/">AI’s impacts on Thematic Investment strategy (Part 1)</a>, we mentioned the growth opportunities that are being seen in sectors such as healthcare and agriculture through AI technology transformation. In this article, we will share more about the industries that have benefited from AI technology and their investment potential.<h2 data-block-key="akt72">Infrastructure</h2>AI in infrastructureApplying AI-controlled data analysis tools in equipment management to predict failure patterns in construction and engineering equipment can help avoid breakdowns, reduce maintenance intervals, adapt operating parameters to changing conditions, and prolong the operating life of machines. With less error-prone, high-performance equipment, construction projects can be carried out in a more cost and time-efficient way.Within the context of AI-controlled and data-driven construction and engineering equipment, so called digital twins – digital replicas of physical assets – are gaining in importance.A US-based provider of infrastructure services for electric power, pipeline, industrial and communications industries, has created a data modelling method that can design an entirely replicated digital twin of a complete manufacturing plant. Based on Industrial Internet of Things (IIoT) technology, the analytics engine can predict both potential operational failures and operational savings prospects, while minimising the effects on plant operations.Addressing labour shortages and enhanced safety measuresThe implementation of connected and autonomous vehicles on construction sites, for instance, can help address labour shortages and reduce project delays. At the same time, autonomous vehicles responding to enhanced safety measures at construction sites are contributing to safer working environments for operators, as the latter are detached from the machine and not exposed to heavy vibrations, and dust, etc., when excavating.Technological transferFinally, the technological learnings gained with autonomous vehicles in mining and industrial settings can be transferred to autonomous driving in urban settings.For the period of 2022 to 2028, the AI market in construction is predicted to show double-digit growth of 24.3%, reaching a value of USD 9.53 billion in the next five years4.<img class="fullwidth" src="/media/images/image_168.2e16d0ba.fill-1254x836.png" alt="image (168)" /><h2 data-block-key="fo3bo">Intelligent machines</h2>With increasing complexity in semiconductor fabrication processes, human cognitive capabilities can no longer keep up with multiple decisions that must be taken in an ever-accelerating way. In this context, AI-based techniques that collect huge amounts of data across the manufacturing process have become a key tool for determining whether each individual processing step was executed correctly.“Human first-computer last”A US-company that delivers critical processes in microchip manufacturing conducted a study5 that compared humans to machines in developing a semiconductor process. The results showed that humans excel in the early stages of process development, while algorithms are more cost-efficient near the tight tolerances of the target. Partnering computer algorithms with human experts can thus lead to a significant reduction of cost-to-target.How AI delivers value to the semiconductor industryAccording to a recent McKinsey survey, semiconductor companies could massively benefit from deploying AI, potentially adding an annual value up to USD 95 billion over the long term.Artificial intelligence could generate $85 billion to $95 billion for semiconductor companies over the long term<img class="fullwidth" src="/media/images/MicrosoftTeams-image_11_1.2e16d0ba.fill-1254x2160.png" alt="MicrosoftTeams-image (11) (1)" />1 Earnings before interest and taxes. 2 Near-term potential refers to gains within the next 2-3 years. 3 Long-term potential refers to gains achieved 4 years or more in the future. Source: Mckinsey: Scaling AI in the sector that enables it: Lessons for semiconductor-device makers. As of April 2021In contrast to this upside potential, less than a third of semiconductor-device makers are already generating value by implementing AI/ML, whereas around 70% are still in pilot stages and progressing sluggishly.This, in turn, illustrates the growth capacity of integrating AI/ML into the manufacturing and designing of semiconductors.<h2 data-block-key="j5rp">Next Generation Energy</h2>Diminishing downtimes: AI/ML-enabled predictive maintenance solutionsAccording to US Department of Energy (DoE) estimates, the cost of power cuts to American businesses is around USD 150 billion annually6. This emphasises the importance of intelligent predictive maintenance solutions, especially for sensitive energy infrastructure.A US-semiconductor manufacturer develops ML-powered smart predictive maintenance solutions that are directly implemented on sensors or IoT devices. This not only diminishes latency and improves real-time managerial decisions, but also augments data protection, lowers bandwidth requirements, and helps to proactively avoid unforeseen breakdowns, resulting in savings on emergency repairs and longer asset life.<h2 data-block-key="c3u4t">Pet Economy</h2>From treating to preventing: the digitalisation of clinical treatmentsAI software can detect complex diseases with increasing accuracy and help interpret veterinary results. This, in turn, leads to more accurate diagnoses, more efficient medication and cures and to a quicker and more reliable identification of individual preventive care requirements. This could foster the growth of the vet care market, not least with regards to pets’ longevity and the special (nutritional) needs of geriatric pets.A multinational company that develops and distributes products and services for the veterinary market designed an AI-powered haematology analyser that removes time-consuming and error-prone manual processes, delivering higher accuracy of results and giving reliable guidance for veterinarians.AI as a thematic investment caseThe emergence of AI has added new and fascinating facets to our unconstrained thematic investing approach. It has opened multiple new angles for participating in the growth prospects resulting from AI-driven structural shifts. Understanding and assessing in detail AI’s disruptive power, and its impact on the several themes covered by our Thematica strategy, can help investors identify untapped opportunities and stay ahead of the curve.Want to search and invest in related funds? Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; AI Technology】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!4 Mordorintelligence.com: AI In Construction Market Analysis. As of July, 2023 5 Lamresearch.com: AI Study Identifies Game-Changing Development Approach for Speeding Up, Slashing Cost of Chip Innovation. As of April 2023 6 US Department of Energy: Report Explores U.S. Advanced Small Modular Reactors to Boost Grid Resiliency. As of January 2018Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AI’s impacts on Thematic Investment strategy (Part 2)

Since the public release of OpenAI’s ChatGPT large language model at the end of 2022, the integration of Artificial intelligence (AI) in core business processes has been gaining cross-industry traction. With its growing significance and proliferation, AI is showing its disruptive potential to drive structural shifts in the way we live, work, produce, and collaborate. An unconstrained thematic investing approach to AI can help identify opportunities arising from these transformational processes, offering investors the chance to participate in cross-sectional growth prospects.AllianzGI have identified several use cases to show AI’s present and future impacts on the investable themes within  AllianzGI’s Thematica strategy.<img class="fullwidth" src="/media/images/photo_3.2e16d0ba.fill-1254x836.jpg" alt="photo (3)" />Digital Life: Where there is cyber there should be AI-backed securityWith an increasing level of connection and with more services moving to a cloud environment, cyber security is growing in significance as complex and deeply integrated IT environments are exposed to new cyber-risks from multiple layers and access points.To protect companies from sophisticated cyber-threats, a multi-layered, holistic, scalable, and seamless cyber security approach is needed. With the integration of AI, features like automated threat detection, malicious patterns prediction, accelerated data protection, and risk-based conditional access can contribute to establishing a multi-layered defence of business processes, data, and IT infrastructure.For instance, two leading US-based companies that provide sophisticated cyber and cloud security services have developed solutions based on the idea of “zero trust”. Dependent on user identity, device security credentials, and access policies, access rights are granted or withhold. These real-time risk-based conditional access applications facilitate and speed up the steering of a multitude of individual access requirements from users. This, in turn, protects complex and thus more vulnerable IT environments from breaches.In parallel, cyber security solutions that help companies identify data leakages in AI applications or assist in designing and building safer AI environments are also gaining importance.The disruptive power of AI-powered cyber security solutions is also reflected in the projected double-digit market growth of this segment:<img class="fullwidth" src="/media/images/04_1.2e16d0ba.fill-1254x748.png" alt="04 (1)" />Source: Marketsandmarktes.com: AI in cybersecurity Market by Offering, Deployment Type, Security Type, Technology, Application, End User and Geography – Global Forecast to 2028. As of August 2023Health TechTrAIning for surgeons: “An experimental study of the National Center for Tumor Diseases Dresden (NCT/UCC) on the practical value of machine learning (ML) methods in abdominal surgery found that all of the four applied ML models outperformed at least 26 out of 28 human participants in pancreas segmentation demonstrating that ML methods have the potential to provide relevant assistance in anatomy recognition in minimally invasive surgery in near-real-time.”1In modern health tech, AI is deployed in the development of advanced surgical education. For example, a US based company that develops and manufactures robot-assisted minimally invasive surgery products, is working on building AI training applications.By collecting and evaluating information from millions of surgical interventions, and by comparing different surgical techniques, the company’s AI training applications will be able to make personalised recommendations during all steps of surgical learning, helping practitioners improve their skills both continuously and selectively.Not least, the AI-backed training of surgeons can also help to lower the likelihood of complications and improve clinical results, through training surgeons to use the most appropriate combinations of instruments and approaches in an intervention.<img class="fullwidth" src="/media/images/05_1.2e16d0ba.fill-1254x1332.png" alt="05 (1)" />Source: Multidisciplinary Digital Publishing Institute: Artificial Intelligence in Surgical Learning. As of February 2023How AI-enhanced conversational agents can help control costs and deliver faster servicesAI-enhanced conversational agents can amplify personalised care through useful and time-saving features. For instance, a US-domiciled healthcare and insurance company, deploys Natural Processing Language (NPL) models – an area of AI – to understand callers’ requests, reply automatically, or redirect incoming calls to internally available resources and responsible departments. This can contribute to shortening the call duration and speeding up responses to patients’ questions.Automatically conducted real-time authorisations of patients’ insurance plans can also lead to significant cost savings, especially in terms of expensive labour time, compared to manual processes.Collecting and classifying data for an improved patient service experienceAI-enhanced conversational agents can collect and classify patient data gained from conversations and propose services that are tailored to individual needs and patient history. This, in turn, can significantly improve patient experiences.Based on the data and information gathered, AI can also predict certain conditions, leading to better clinical outcomes and further substantial cost-savings.Clean Water and LandAI in agricultureThe application of machine learning, a subset of AI, can help farmers create a cost-effective, fine-tuned seeding and spraying schedule that will optimise crop yield and quality, reduce weeds, while significantly diminishing the use of pesticides. The real-time differentiation and localisation of weeds permits a targeted deployment of herbicides and the shortest path to weed control. This is an essential contribution to food security.A global manufacturer of agricultural machinery and farm management software has developed a computer-vision and machine-learning backed precision agriculture system. This can contribute to a substantial reduction of pesticides, while supporting farmers in saving valuable resources and promoting better root health in crops.Higher adoption rates could drive further growth of precision agriculture marketAlthough the global precision farming market size is projected to amount to USD 20.84 billion by 2030, showing a staggering double-digit compound annual growth rate (CAGR) of 12.8%2 , there remains plenty of room for improvement.A still mediocre adoption rate of sophisticated information technology among global farmers is both hampering the advancement of precision farming market’s size and value, as well as offering investment opportunities to participate in the segment’s growth potential.This is especially true for Asia, which has the world’s largest amount of arable land3 and, in parallel, the lowest adoption rate for precision farming.<img class="fullwidth" src="/media/images/06_1.2e16d0ba.fill-1254x1281.png" alt="06 (1)" />Source: McKinsey survey among 5,500+ farmers across the globe. As of 2022Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; AI Technology】to find out more!Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AI’s impacts on Thematic Investment strategy (Part 1)

Company mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022.<img class="fullwidth" src="/media/images/photo_2_20231107_2.2e16d0ba.fill-1254x836.png" alt="image" />Key takeaways<ul><li data-block-key="eudnp">A massive increase in mentions of Artificial Intelligence (AI) and related topics on quarterly earnings calls since the public release of OpenAI’s ChatGPT large language model at the end of 2022 reflects the fast-paced advancement of Generative AI systems and their growing cross-sector relevance</li><li data-block-key="egk6t">While, thus far, companies driving the AI conversation are well-established technology leaders, it is expected to steadily expand also among non-tech industries</li><li data-block-key="fc5q1">Longer term, the conversation around AI is expected to continue at an elevated level with management teams providing more details regarding their plans to integrate AI in their operations and launching new AI-enabled products</li></ul>Merits a mention: AI conversation at an inflection pointCompany mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022. Through the three months ended 30 June 2023, which include the calendar first quarter earnings release period, total company mentions of AI-related topics increased nearly 2.5x from the five-year average.<img class="fullwidth" src="/media/images/Picture3_1.2e16d0ba.fill-1254x715.jpg" alt="Picture3 (1)" />Who is talking about AI and what are they saying?Understandably, the companies driving the conversation are well-established technology leaders the likes of NVIDIA, Microsoft, and Adobe. These companies’ management teams have made bold pronouncements and predictions related to the impact of AI advancements on their businesses and society:“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process” – Jensen Huang, NVIDIA CEO 1&quot;Next generation of AI will unlock a new wave of productivity growth, with powerful copilots designed to remove the drudgery from our daily tasks and jobs, freeing us to rediscover the joy of creation” – Satya Nadella, Microsoft CEO 2“Generative AI in the creative space is going to augment human ingenuity…the winning companies are those who recognize that there’s a complete workflow associated with it” – Shantanu Narayen, Adobe CEO 3Thus far, technology companies have been more vocal regarding their views on the latest in AI developments with mentions on quarterly conference calls increasing 3.2x from the five-year average. Meanwhile, non-technology companies have also increased their mentions of AI though not at the same level as their tech counterparts.<img class="fullwidth" src="/media/images/Picture4_1.2e16d0ba.fill-1254x830.jpg" alt="Picture4 (1)" />Allianz Global Investors (‘Allianz’) expect the AI conversation to steadily expand among non-tech industries as these companies explore and adopt the latest developments in the space, particularly those around Generative AI. Executives from sector leaders such as JPMorgan and Eli Lilly have articulated their views on how Generative AI and other AI technologies could impact their respective industries.“AI is real. This is a technology which is staggering…we’re already using them to do risk, fraud, marketing, prospecting and it’s the tip of the iceberg.” – Jamie Dimon, JPMorgan CEO4“We’re using generative AI to help our scientists identify new molecules that could lead to new medicines…discovering different ideas than typically appear to the human mind” – Dave Ricks, Eli Lilly CEO5What’s next in the AI discussion?Allianz expects the conversation around AI to continue at an elevated level and look for management teams to provide more details regarding their activities in that space. Allianz anticipates companies will highlight their plans to integrate AI in their operations as well as launching new AI-enabled products.For instance, Microsoft will soon expand the availability of their Generative AI-enabled 365 Copilot which automates activities in the Office 365 suite. Allianz believes the 365 Copilot will be the first of many such products launched with the potential to accelerate growth and productivity across sectors.Longer-term, Allianz expects investments by non-technology companies in the latest AI tools such as large-language models and Generative AI to yield significant productivity enhancements. The breadth of applicability and transformational potential will necessitate coordination between private and public entities to ensure the safety and reliability of these new tools, in Allianz’s view.Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; AI Technology】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings &gt; Marketing preferences】to accept receiving our marketing communications as well!Source:1 NVIDIA Q1 2024 Financial Results Press Release 2 Microsoft: Reinventing productivity with AI 3 Stanford GSB View from the Top: Generative AI Won’t Replace Human Ingenuity 4 Bloomberg on YouTube 3/9/2023 5 LinkedIn Post by Dave Ricks on 3/21/2023Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Latest discussion on Tech Investment: AI is under the spotlight again

<img class="fullwidth" src="/media/images/photo_1.2e16d0ba.fill-1254x836.jpg" alt="photo (1)" />What are high-yield bonds?As the name suggests, high-yield bonds offer higher yields relative to other fixed-income instruments. High-yield bonds are rated lower than &quot;BBB-&quot; and, as a result, their yields are generally more attractive than higher-rated bonds, such as U.S. Treasury bills and investment-grade corporate bonds.The high-yield bond market has expanded in size and depth over the past few decades and has become a popular asset class for investors around the world. In 2000, the market size of U.S. high-yield bonds was only US$338 billion; by June 2023, the size had risen to approximately US$1.35 trillion1. The U.S. high-yield bond market continues to grow steadily.According to the ICE BofA USD High Yield Index, U.S. high-yield bonds account for approximately 60%2 of the global high-yield bond market. The U.S. high-yield bond market is also very diversified, covering multiple industries, and investors can invest in a diverse range of bonds.Why Invest in High Yield Bonds?<ol><li data-block-key="5noko">Potential revenue returns</li></ol>After the U.S. Federal Reserve carries out a series of interest rate hikes in 2022, the potential yield of high-yield bonds returns to very attractive levels. As of June 30, 2023, the yields on 10-year U.S. Treasury bills and investment-grade corporate bonds were 3.81% and 5.55% respectively, and the dividend rate on U.S. stocks (represented by the S&amp;P 500 Index) was 1.57%3. However, the above yield is far lower than the 8.35%3 of US high-yield bonds, which is an attractive investment opportunity for both international and local investors. Many investors now add high-yield bonds to their investment portfolios to increase potential returns and as a hedge.2. The potential interest rates of U.S. high-yield bonds are attractive<img class="fullwidth" src="/media/images/1254.2e16d0ba.fill-1254x551.png" alt="1254" />3. Proven past performanceIn the past, U.S. high-yield bonds have recorded satisfactory investment returns, with the average annual return over the past 35 years being 7.58%4. In addition, between 1988 and 2022, the U.S. high-yield bond market recorded negative returns in only 8 years, and increased in the remaining 27 years5. It is undoubtedly an &quot;outstanding student&quot; in the global fixed income field, and is therefore widely favored by investors. It&#x27;s also worth noting that U.S. high-yield bonds have never posted two consecutive years of declines.4. Advantages of diversification of fixed interest incomeHigh-yield bonds have historically provided returns similar to stocks, but with less volatility than stocks. Because high-yield bonds have relatively low correlations with U.S. Treasuries and other core bonds, they can provide diversification benefits from fixed-rate income. U.S. Treasury securities are very sensitive to changes in interest rates, and bond prices generally fall as interest rates rise. Conversely, U.S. high-yield bonds are driven more by issuer fundamentals than interest rate movements, so their correlation to the 10-year U.S. Treasury note is very low, currently at -0.07.Risks of High Yield Bonds<ol><li data-block-key="2mul2">Default risks are concentrated in the energy industry</li></ol>The biggest risk of high-yield bonds is default risk. As credit fundamentals improve, the high-yield bond default rate fell to 1.64%6 in 2023 (as of June 2023), which is well below the historical long-term default rate of 3.56%7.2. Pay attention to market volatilityThe high-yield bond market can be volatile, and investors should be aware of market volatility when investing in the high-yield market. Positive returns appear to be elusive, and investors should expect increased volatility. The annualized volatility of U.S. high-yield bonds since 1988 has been 8.25%8, which is lower than the S&amp;P 500 Index’s volatility of 14.74%8 during the same period.Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Bond &amp; Money Market &gt; High Yield】to find out more.Source:1Intercontinental Exchange Data Service, Intercontinental Exchange Bank of America U.S. High Yield Bond Index, as of June 30, 2023.2Bloomberg, as of June 30, 2023.3Bloomberg, U.S. investment grade corporate bonds are represented by the ICE BofA U.S. Corporate Bond Index, U.S. high-yield bonds are represented by the ICE BofA U.S. High Yield Bond Index, and the yield represents the index’s return to maturity. Rate; as of June 30, 2023.4 Morningstar, U.S. high-yield bonds are represented by the ICE BofA U.S. High-Yield Bond Index, with data from January 1, 1988 to June 30, 2023.5 Morningstar, ICE Data Services, Bloomberg, Allianz Investors; as of June 30, 2023. The performance of U.S. high-yield bonds is calculated using the ICE BofA U.S. High-Yield Bond Index.6Bloomberg, ICE Data Services, FactSet, Allianz Investors; as of June 30, 2023. The 10-year Treasury bill is represented by the ICE BofA Spot U.S. 10-Year Treasury Bill Index.7Intercontinental Exchange Data Services, JPMorgan Chase; as of June 30, 2023. U.S. high yield bonds are represented by the ICE BofA U.S. High Yield Bond Index.8 Morning Star; from January 1, 1988 to June 30, 2023. U.S. high yield bonds are represented by the ICE BofA U.S. High Yield Bond Index.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

【Invest with Income Ep.3】Understand High Yield Bond Funds in 3 Mins

With global economic prospects diverging, investors may look to defend their portfolios from increased market volatility by gaining exposure to those economies set to drive growth in the next few years. With solid fundamentals and attractive valuations, it may be time to look at Asian fixed income.Why Asian fixed income?In our view, Asian fixed income is under-owned and under-appreciated by global investors – partly because as mentioned they have traditionally relied on EM indices for Asian exposure.Yet as Exhibit 1 shows, Asian USD credit (as represented by the JACI) has historically demonstrated a superior risk-adjusted return vs other major developed and emerging economy bond markets.Exhibit 1: Asian credit has historically offered superior risk-adjusted return<img class="fullwidth" src="/media/images/Picture1.2e16d0ba.fill-624x435.png" alt="Source: Bloomberg, JP Morgan, AllianzGI as at 31 March 2023. Return figures are shown in USD. Calculation based on monthly data from 2006-2022." />Source: Bloomberg, JP Morgan, AllianzGI as at 31 March 2023. Return figures are shown in USD. Calculation based on monthly data from 2006-2022.Asian investment grade (IG) bonds in particular have shown greater resilience than their US and global counterparts, with lower drawdowns during recent market crises (as shown by Exhibit 2).Exhibit 2: Asian IG has shown lower drawdowns during crises<img class="fullwidth" src="/media/images/Picture2.2e16d0ba.fill-624x419.png" alt="Source: Bloomberg, AllianzGI, as of 31 March 2023. Asian IG is based on the JPM Asia Credit – Investment Grade Index, US IG is based on the Bloomberg US Corporate Total Return and Glbl Agg Credit is based on the Bloomberg Global Aggregate Credit Total Return. GFC/Lehman Crisis (16/09/2008-09/03/2009), 2018 Fed Rate Hikes (02/01/2018 – 08/11/2018), Covid-19 Pandemic (19/02/2020 – 23/03/2020), 2022 Global Monetary Tightening (03/01/2022 – 30/12/2022)." />Source: Bloomberg, AllianzGI, as of 31 March 2023. Asian IG is based on the JPM Asia Credit – Investment Grade Index, US IG is based on the Bloomberg US Corporate Total Return and Glbl Agg Credit is based on the Bloomberg Global Aggregate Credit Total Return. GFC/Lehman Crisis (16/09/2008-09/03/2009), 2018 Fed Rate Hikes (02/01/2018 – 08/11/2018), Covid-19 Pandemic (19/02/2020 – 23/03/2020), 2022 Global Monetary Tightening (03/01/2022 – 30/12/2022).Asian IG corporates demonstrate solid credit fundamentals, with low leverage (an average net debt/ EBITDA1 ratio of 1.8) and healthy liquidity (an average cash/short term debt ratio of 114%)2. With the major developed economies looking unlikely to avoid recession, markets could be volatile in the coming months and the resilience of Asian IG could offer some stability to investors’ portfolios.We also regard Asian banks as well capitalised institutions with strong liquidity. The Asian banking sector’s average liquidity coverage ratio (LCR) 3 is 168%4, for example, compared to around 150% for the largest European banks and around 120% for the largest US banks5. Asian banks’ relatively low trading income as a proportion of total revenue, and relatively high proportion of deposits to liabilities (as shown by Exhibit 3), also compare favourably, and in our view reflect their historically more conservative model of deposit-taking and lending when compared to many Western banks.Exhibit 3: Asian banks show solid fundamentals<img class="fullwidth" src="/media/images/Picture3.2e16d0ba.fill-624x314.png" alt="Picture3" />Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Bond &amp; Money Market &gt; Asia Bond】to find out more!Source:1. EBITDA – earnings before interest, taxes, depreciation, and amortisation – is a widely used measure of cash profit derived from a firm’s core operations. 2. JP Morgan, AllianzGI as at 31 March 2023. 3. The Liquidity Coverage Ratio (LCR) is a measure of banks’ short-term liquidity which measures a bank’s unencumbered high quality liquid assets relative to the net cash outflows it could encounter under a severe 30-day stress scenario. 4. Moody’s as at 31 March 2023. 5. Fitch Ratings as at 31 December 2022.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

【Invest with Income Ep.2】Asian fixed income: an antidote to global slowdown?

As the U.S. economy performs strong and inflation has fallen from highs, investors are optimistic about the outlook, but they are worried about the lagging effects of tightening monetary policy. Under these circumstances, a bond investment strategy that maintains profitability will help balance various risks and opportunities, thereby bringing about sustained and stable return potential.Indeed, the long-awaited U.S. economic recession has been delayed. On the contrary, the data reflects a stable job market, optimistic consumer confidence, and continued improvement in housing market activity. In addition, the overall inflation rate is on a downward trend, which makes corporate profit expectations seem to have stabilized.<img class="fullwidth" src="/media/images/photo1016.2e16d0ba.fill-1254x836.jpg" alt="photo1016" />Valuation at discount, Corporate Bond prospects attractiveThe positive atmosphere has driven the performance of the corporate bond market. As of the end of June this year, the ICE Bank of America U.S. High Yield Bond Index recorded a 5.41% increase1. There are reasons for the good performance of corporate bonds this year. After the 2022 cut, many bonds are trading at significant discounts to face value. For example, the price of investment-grade corporate bonds has fallen to the lowest level since 20082, thus providing very attractive total return potential.In addition, according to historical data, U.S. investment-grade corporate bonds rarely experience negative annual returns, and negative returns for more than two consecutive years are even rarer; similarly, U.S. high-yield bonds have never experienced negative returns for two consecutive years.When investing in corporate bonds, one of the risks that needs attention is the default rate, and the default rate of U.S. investment-grade corporate bonds has always been very low; in terms of U.S. high-yield bonds, the default rate in dollar-weighted terms is only 2.71%. If The issuer-weighted calculation is as low as 1.53%3. Both calculation methods are also lower than the long-term average, reflecting the overall solid financial status of the company.After the Federal Reserve has repeatedly raised interest rates, the U.S. economy has continued to grow, which has greatly surprised the market. However, some investors are worried that the effects of tightening monetary policy have not yet appeared, and they are worried that high interest rates will always affect household wealth, consumption intentions and Property market trends. In view of this, while investors participate in the rise in corporate bonds, they also need to take defensive measures, such as using U.S. Treasury bonds to protect their principal. At the same time, U.S. Treasury bonds can also provide higher and more reliable returns when interest rates rise sharply.Focus on profitability and qualityIn summary, as the tightening cycle matures, different bonds will bring different effects: U.S. Treasury bonds or agency bonds can provide a safe haven for the investment portfolio and bring sustained income and ample liquidity; U.S. investments Grade bonds are expected to create stable returns based on quality; while U.S. high-yield bonds can increase overall income and total return potential while reducing overall duration risk.It is worth noting that diversification of investments is important, but if the composition of bonds is too complex, investors may also face unpredictable risks. For example, the performance of U.S. mortgage-backed securities is closely related to the housing market, while bonds rated CCC or below have quality doubts. Constructing a simple but high-quality bond portfolio will more effectively achieve the goals of capital appreciation, income generation and risk reduction.Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth &gt; Pick your own funds &gt; Bond &amp; Money Market &gt; Global Income】to find out more!Source: 1Intercontinental Exchange, data as of 30 Jun 2023 2Intercontinental Exchange and AllianzGI, data as of 30 Jun 2023 3Intercontinental Exchange and AllianzGI, data as of 30 Jun 2023Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

【Invest with Income Ep.1】Global Fixed Income Funds

Paying attention to Environmental, social and governance (ESG) issues can contribute to the world, how about: any valuable insights can investors gain from how asset managers use ESG in investing? Which sectors may achieve net-zero emissions targets because of their emphasis on ESG factors?ESG has become crucial in investment strategy of asset managersMore and more asset management companies are including ESG factors into investment considerations to help investors avoid potential risks and increase their ability to withstand fluctuations.For example, Fidelity takes an active approach1 to sustainable investing and aims to enhance long-term investment returns while managing risk for our clients. The approach is built on three pillars: integration, engagement, and collaboration.Take Integration as an example, Fidelity believes that assessing sustainability is part of fundamental investing, and by integrating it into Fidelity investment processes, Fidelity can gain a complete view of the companies and markets under monitoring.Through Fidelity corporate access, due diligence processes and industry expertise, its investment analysts deliver independent sustainability analysis that is summarised by the proprietary ESG ratings.These ratings, combined with input from Fidelity specialist ESG team, and external analysis and ratings, help ensure the team is better informed of a company’s ESG performance, and the potential risks and opportunities this poses for investors.<img class="fullwidth" src="/media/images/market5_en_v2.2e16d0ba.fill-1254x740.png" alt="market5_en_v2" />On the other hand, Allianz Global Investors (AllianzGI) has its ESG investment strategies including ‘Integrated ESG’, ‘Impact Investing’ and ‘Sustainable and Responsible Investing2:<ul><li data-block-key="5meoq">Integrated ESG: Review ESG factors and combine ‘Integrated ESG’ with due diligence and engagement across all asset classes (including equities, fixed income, multi-asset and alternative assets) to improve investment risk profiles to achieve better risk adjustments return later; make good use of analytical frameworks to examine a company’s ESG characteristics to manage tail risks and vulnerabilities.</li><li data-block-key="8ui9k">Impact Investing: AGI’s impact investing strategy has three core beliefs: the goal is to create positive value for society and the environment while striving for potential financial returns; there is a clear link between each investment and the results achieved; and a commitment to evaluation and recording. The impact of investment is to verify whether the investment strategy is effective.</li><li data-block-key="8358s">Sustainable and Responsible Investing: AllianzGI’s sustainable SRI strategy research is divided into four major areas. It uses proprietary SRI ratings and exclusion methods to evaluate ESG, aiming to create a sustainable investment portfolio, and conduct different investments in stocks, fixed income and multi-assets. AllianzGI is committed to providing &quot;best-in-class&quot; SRI strategies across asset classes.</li></ul>Corporate progress in including ESG and achieving net-zero emissions goalsIt&#x27;s only seven years until 2030. This is when Fidelity’s analysts want to see most companies achieve their carbon net-zero targets. Fidelity’s 2023 ESG Analyst Survey3 finds that, though some companies’ progress towards their net zero targets may fall short, there are still a lot of positive takeaways from this year’s survey, with, for instance, company engagement across Asia is improving, and our analysts observing increasing focus among businesses on ESG factors.Not all market segments find the path towards net zero straightforward. On a positive note, communications and IT are largely on track, partly because many of the leading players in these sectors have achievable ambitions.On the other hand, businesses operating in, for instance, the energy and airline space rely more on the developmental pace of transformative technologies. “I estimate that 10 per cent of the airlines’ path to net zero will happen this decade,” says airline specialist Neve. Savings will come from investments in more fuel-efficient aircraft and sustainable aviation fuel. “The key problem is that the technology to get there has still to be developed.”Despite the uncertain economic backdrop and shifting corporate priorities, ESG remains relevant, particularly in China, where the government plays a significant role. The study among Fidelity’s analysts also reveals that company engagement has improved, particularly in China and Japan. For the past few years, what our analysts saw as effective engagement has hovered around the 30 per cent level for China, but in 2023, this is up by 20 percentage points.Government regulation and incentives are also essential to drive change. Common standards are needed to achieve environmental and social goals. In the ESG Analyst Survey, 98 per cent of those questioned say that regulation helps accelerate progress towards sustainability goals. Meanwhile, only a quarter of the companies covered by Fidelity currently use carbon markets as a part of their net-zero ambitions. As such, they need clearer price mechanisms and international functionality.Want to search or invest in ESG Funds?Open App and click【GoWealth &gt; Pick your own funds &gt; Equity &gt; ESG】<ol><li data-block-key="qbi6">You may search ‘Fidelity Stainable Investing Approach’ on the internet for more details</li><li data-block-key="16ng9">Source: ‘Key strategies for ESG investing’, Allianz Global Investors, as of Nov 2020</li><li data-block-key="dradb">You may search ‘Fidelity ESG Analyst Survey 2023’ to uncover more findings</li></ol>Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Two important points for investors to note about ESG investing

How does the peaking of interest rate affect time deposit interest ratesWith nearly a year and a half into the Fed tightening, interest rates on fixed deposits (FD) have become very attractive. Some banks have hiked their FD rates so much that they are now offering 4% - 5% for longer tenors. While many investors have put more money into fixed deposits and are hoping to keep getting the same high interest rate upon maturity rollover, it seems like the era of rising interest rates is very close to its tail end.<img class="fullwidth" src="/media/images/photo.2e16d0ba.fill-1254x836.jpg" alt="photo" />John C. Williams, President of the Federal Reserve Bank of New York, said in an interview that he didn’t see a need for more than one Fed rate increase in 2023.“We’re pretty close to what a peak rate would be, and the question will really be — once we have a good understanding of that — how long will we need to keep policy in a restrictive stance, and what does that mean?” Mr. Williams said in early August.The economy is approaching a pivot point, one that has many consumers wondering when rates will come back down, how quickly and how much.What could fixed deposit investors do?Some investment managers believe that there&#x27;s no guaranteed investment strategy for when interest rates peak, but there are several potential investments that can help to contain risk and form a portfolio for more gains in the months and years ahead.<ul><li data-block-key="2l9fu">U.S. government bonds</li><li data-block-key="8ua20">Global government bonds</li><li data-block-key="694an">Emerging market government bonds</li><li data-block-key="7srnt">Asian aggregate bonds</li></ul>Time to go back to asset allocation?When interest rate stop rising or start sliding, asset allocation becomes important again. It’s because of its proven ability to balance risk and reward by apportioning a portfolio&#x27;s cash, bonds and equities according to an individual&#x27;s goals, risk tolerance, and investment horizon.Taking WeLab Bank GoWealth Digital Wealth Advisory as example, the performance of the mixed asset (equity and bonds portfolios) since their launch in June 2022 delivers as high as 12.7%*.<img class="fullwidth" src="/media/images/wm-index-webpage-2-en-v3.2e16d0ba.fill-1600x1371.png" alt="wm-index-webpage-2-en-v3" /><a href="https://www.welab.bank/media/documents/EN_gowealth_index.pdf">Learn More</a>Investors may expect to go with a balanced portfolio to ride the asset performance outlook in the coming years. Some investment managers think that investing in different asset classes such as bonds and equities’ mix can diversify the market risks.The following charts showed examples of scenario analysis based on the following assumptions on 14 September 2023 for three of the portfolio recommendations* of WeLab Bank GoWealth Digital Wealth Advisory. Assuming the customer risk rating is 5; total investment amount is HKD 100,000, investment horizon is 5 years, below are the fund weight, the stimulation results in adverse and favorable scenarios** for reference.<img class="fullwidth" src="/media/images/1.2e16d0ba.fill-1254x498.jpg" alt="1" /><img class="fullwidth" src="/media/images/2.2e16d0ba.fill-1254x498.jpg" alt="2" /><img class="fullwidth" src="/media/images/3.2e16d0ba.fill-1254x498.jpg" alt="3" />*The above charts illustrate the performance of the portfolio recommendation under adverse and favorable scenarios as well as the target wealth for reference only. The portfolio recommendation of WeLab Bank GoWealth Digital Wealth Advisory considers your latest inputs and personal circumstances specific to the goal. Your risk appetite, risk capacity, goal-specific investment objective and investment horizon, investment product knowledge and experience, and your financial situation will also be assessed upon order placement. However, the recommendation is not a guarantee of future result nor guarantee that you will achieve your goal. Before investing, you should carefully consider your investment objective, risks, charges and expenses and seek independent professional advice if necessary. For details of the portfolio recommendation please refer to the FAQ section of the GoWealth Digital Wealth Advisory Services.**The adverse and favourable scenarios are statistical projections of your portfolio values at the 10th and 90th percentile based on the goal settings, investment plan, model portfolio and capital market forecast. Please be reminded that the price of funds may move up or down, and may become valueless.Note: We formulate GoWealth Investment Portfolio Index for bond portfolios, mixed asset portfolios, and equity portfolios respectively, aiming at illustrating the performance of the investment portfolios of GoWealth since launch. The Index is provided for reference only and does not constitute any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. Investment involves risks. Past performance is not indicative or guarantee of future results. You should not regard the index as a prediction or guarantee of future performance.For details of the index, including its calculation method, source of information and purposes, please refer to the relevant report.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Investment involves risk. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How much longer will cash still be king?

This article explains the appealing blend of defensive qualities and growth potential of Healthcare sector within the current market environment.3 Important Points:<ol><li data-block-key="207ld">The healthcare sector exhibited superior performance compared to the overall market in 2022 and has continued to generate positive returns during the first half of 2023. This is consistent with its track record of minimizing losses during significant market downturns.</li><li data-block-key="dp25o">Simultaneously, there has been a surge in global demand for healthcare services and advancements in medical technology, which has contributed to revenue growth in various segments of the sector.</li><li data-block-key="7vcgo">The combination of defensive characteristics and growth opportunities could be a valuable source of diversified returns.</li></ol><img class="fullwidth" src="/media/images/market-buzz-blog-aug30-5.2e16d0ba.fill-1254x836.png" alt="market-buzz-blog-aug30-5" />The healthcare sector continues to witness a steady and escalating global demand for medical care services, which has been instrumental in upholding its resilience during market downturns. This was clearly evident in 2022, as exemplified by the MSCI World Health Care Index&#x27;s return of -5.4%, compared with MSCI World Index&#x27;s decline of -17.7%. Moreover, during the period from January to July 2023, the MSCI World Index has already recorded a substantial increase of 19.34%, while the MSCI World Health Care Index exhibited a mild growth of 2.43%. Nevertheless, it is important to note that the healthcare sector is also experiencing notable expansion, presenting investors with an additional potential avenue for diversified returns.<img class="fullwidth" src="/media/images/market-buzz-blog-aug30-1.2e16d0ba.fill-1254x465.png" alt="market-buzz-blog-aug30-1" />Rapid innovation and growthThe advancements in genomic sequencing and other biomedical tools over the past two decades have revolutionized the field of disease targeting and treatment. These breakthroughs encompass a wide range of methods, including antibody drug conjugates, gene therapies, and remote glucose monitors, which have the potential to significantly enhance the standard of patient care. In some cases, rare diseases that were once considered incurable can be addressed.In order to foster and support such research endeavors, regulatory authorities have established expedited pathways for the review process of medications that target high unmet medical needs. As a result of these initiatives, there has been a remarkable increase in the number of newly approved drugs. Specifically, from 2018 to 2022, the Food and Drug Administration (FDA) granted approval to nearly 250 novel drugs, representing a 100% surge compared to the approvals granted 15 years ago (Image 1). Similarly, during the same five-year period, the European Medicines Agency (EMA) approved over 200 therapies.Image 1: Food and Drug Administration (FDA) approvals of novel drug<img class="fullwidth" src="/media/images/market-buzz-blog-aug30-2.2e16d0ba.fill-1254x686.png" alt="market-buzz-blog-aug30-2" />The emergence of new therapies coincides with a significant surge in the demand for medical care. This increased demand can be attributed to factors such as the growing household wealth and the expansion of both public and private insurance coverage. For instance, in China, government reforms implemented over the past decade have resulted in approximately 95% of the population being covered by the country&#x27;s basic insurance program. Moreover, China&#x27;s reimbursement for pharmaceuticals has also expanded, with more than 100 therapies being added to the National Reimbursement Drug List in 2022.Another influential factor contributing to the rising demand for medical care is the aging global population. It is projected that by 2050, approximately 16% of the world&#x27;s population will be over the age of 65. This demographic group tends to spend around three times more on healthcare compared to younger individuals. This demographic shift is particularly significant in high-income regions.The combination of rapid innovation and increased demand has led to substantial revenue growth in the healthcare sector. Sales of blockbuster biotech drugs, which are defined as drugs with annual sales of $1 billion or more, surpassed $400 billion in 2021, marking a seventy-fold increase compared to approximately two decades ago. Furthermore, the market for COVID-19 products, which did not exist three years ago, contributed $75 billion to the total revenue in the same year.The Defense Proof PointsIn the face of increasing interest rates impacting financial markets, the healthcare sector exhibited superior performance compared to broader equity indices. This trend is not an isolated occurrence.　Over the period from 2000 onwards, healthcare has consistently demonstrated resilience by experiencing only a 47% average exposure to market downturns of 15% or more (refer to Image 2). This can be attributed, in large part, to the strong performance of large-cap health insurance and pharmaceutical companies. These entities, characterized by stable demand and pricing power, have shown a capacity to thrive irrespective of the prevailing economic conditions.Image 2: Healthcare has outperformed in past drawdowns<img class="fullwidth" src="/media/images/market-buzz-blog-aug30-3.2e16d0ba.fill-1254x641.png" alt="market-buzz-blog-aug30-3" />Attractive ValuationsIn recent months, investors have displayed a greater inclination to reward innovation, resulting in notable gains (100% or more) for certain stocks upon the release of positive news. These favorable returns are facilitated by attractive valuations in the healthcare sector. The forward price-to-earnings (P/E) ratio of the sector currently resides below its long-term average (refer to Image 3), and numerous biotech companies are trading at prices lower than the value of cash on their balance sheets. The alluring low valuations have also piqued the interest of large-cap biopharma companies, as evidenced by several mergers and acquisitions announced last year at premiums exceeding 100%. Given the impending patent cliffs faced by certain biopharma companies in the coming decade, anticipate the possibility of further deals materializing in 2023.Image 3: The valuations of healthcare have fallen to below average levels<img class="fullwidth" src="/media/images/market-buzz-blog-aug30-4.2e16d0ba.fill-1254x734.png" alt="market-buzz-blog-aug30-4" />While the healthcare sector faces various challenges such as labor shortages, regulatory pressures, and declining sales related to COVID-19 would continue to bring negative effect on certain stock names. However, the long-term outlook of the healthcare sector more than makes up for any near-term headwinds. The opportunity to generate returns that are not closely corrected – while simultaneously delivering benefits for patients – is becoming increasingly robust.Our Featured Funds Services consolidate investment ideas and hot funds1. “Healthcare” is one of the themes available in the Services. Log in to WeLab Bank app, tap the “GoWealth” at the right bottom corner &gt; “Pick you own funds” &gt; “Featured Funds” &gt; “Equity” &gt; “Healthcare”, to learn more.Remarks: (1) We categorise the funds into different investment themes set by us based on the funds&#x27; information and provide theme descriptions. Information relevant to the funds and categorisation is for reference only and does not constitute a solicitation, offer or investment advice.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Healthcare sector outperforms again in 2023: Defensive Growth and Attractive Valuations

In July, we held an investment seminar and invited J.P. Morgan Asset Management, one of the top global investment institutions, to share insights on A.I. technology. Click to watch a 4 mins guide.J.P. Morgan Asset Management’s 4 important points:<ol><li data-block-key="r3sd">One of the factors that influences long-term economic growth potential is technology, as it expands the potential for economic growth. During an economic recession, the technology stocks under J.P. Morgan Asset Management experienced a decline of about 2% in earnings in 2023, but we expect a growth of 14% in 2024.</li><li data-block-key="c1560">This A.I. boom is somewhat different from previous bubbles. This A.I. boom is happening during a period of interest rate hikes, whereas many previous bubbles occurred during rate cuts and low-interest rate environments.</li><li data-block-key="4dulf">Compared to the dot-com era in 2000, today&#x27;s A.I. technology has been applied in many different aspects of life practically, which has created an ecological chain for investment. Instead of just investing in one company that has appreciated, why not invest in a series of companies that benefit from A.I.</li><li data-block-key="89hgd">The benefit of buying U.S. stocks through fund companies, is that they have professional teams which are capable to help customers discover various small and medium-sized or new star technology companies which have high potential, instead of the top 10 companies only.</li></ol><div class="video-container" src="https://www.youtube.com/embed/4NIJJ--NlDU"><iframe src="https://www.youtube.com/embed/4NIJJ--NlDU"> </iframe></div>Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

A.I. bubble? Expert analyzes the future investment opportunities of A.I. technology

Today’s fixed income market - equity - like returns with lower level of riskThis article presents how bond fund strategy pursues higher yields and the potential for price appreciation that fixed income is now offering, while endeavoring to remain resilient in the face of economic uncertainty.<img class="fullwidth" src="/media/images/shutterstock_1916887211_resized.2e16d0ba.fill-1254x836.jpg" alt="shutterstock_1916887211_resized" />Liquidity vs. Credit Quality, or both?Some fund managers’ base case projections predominant forecast core inflation to trend lower but linger above central bank targets for a few quarters in the United States, Europe, and some other developed economies. This journey to central bank targets may also be bumpy and could include a slight reacceleration in core inflation in the coming months. Consequently, the likelihood of experiencing at least a mild recession before central banks get inflation back close to target levels may be higher than 50%.Given the uncertain economic trajectory, some fund managers are actively prioritizing the enhancement of credit quality within their Income portfolios. At the same time, they are striving to maintain sufficient liquidity to purse resilience and flexibility in the face of this uncertainty.Diversifying the portfolioAlso, some fund managers are optimizing the flexibility to invest across various credit qualities, sectors, geographies, and maturities.This approach allows them to take advantage of compelling yields offered by high-quality assets, with potential downside resilience and price appreciation even during a recession. The anticipation is that global volatility will continue into 2024, creating favorable conditions for some proactive fund managers.Furthermore, some fund managers have capitalized on market dislocations in high-quality assets resulting from fear or abrupt shifts in economic expectations. They have particularly focused on higher-quality and liquid securitized market segments, such as agency mortgage-backed securities (MBS), to leverage the ongoing market volatility.What are being avoided?Some fund managers have made strategic adjustments in their investment approach of fixed income strategies, they have shifted out of lower-rated and more economically sensitive corporate credit – which has limited covenants to support investors – while a bit more neutral on investment-grade corporate credit.Additionally, caution is exercised in the senior secured loan space as these loans have floating interest rates, leaving borrowers – many of which are smaller, heavily leveraged companies – facing sharply higher debt service costs. The credit fundamentals in this sector may likely deteriorate, leaving it a vulnerable area of the market in the event of a harder landing.Furthermore, some fund managers have reduced their exposure to emerging markets over the past few years and shifted their focus towards more defensive sectors, such as agency mortgages and other structured products.With the Fed approaching the end of its tightening cycle, some fund managers perceive the U.S. dollar as overvalued against various global currencies, including some in emerging markets. Consequently, some fund managers are using the small position in emerging markets as prudent source of diversification for the overall investment strategy.Remarks: This article is only aimed at giving an overview on some fund manager’s strategies in general. For investment strategy of particular fund, investors should refer to the relevant offering documents.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How bond fund strategy pursues higher yields?

When the interest rate hike cycle is nearing the end, what investment strategy is most advisable?In July, we held an investment seminar and invited Allianz Global Investors, one of the top global investment institutions, to share the insights on diversified equity and bond mixed assets funds. Click to watch a 3 mins guide.Allianz Global Investors’ 2 important points:<ol><li data-block-key="2au14">Regarding the possibility of an economic recession, expert from Allianz Global Investors believes that there is no need to be overly pessimistic about the economic outlook, as the US unemployment rate is currently situated between 3.6% to 3.7%. When the US unemployment rate is not too bad, recession is likely to be mild.</li><li data-block-key="6r37s">Considering Convertible Bonds (CB) in asset allocation allows it to be capable to attack and defense, providing income while enjoying the potential upside of the equity market if it continues to rise.</li></ol><div class="video-container" src="https://www.youtube.com/embed/HKWrrhGssfI"><iframe src="https://www.youtube.com/embed/HKWrrhGssfI"> </iframe></div>3 characteristics of Allianz Global Investors’ Income and Growth strategy:<ol><li data-block-key="bfoqf">Could provide dividend potential and help investors to capture potential source of income</li><li data-block-key="encpg">3 asset classes, 1 goal: seek potential income and growth</li><li data-block-key="dagio">Potential for upside participation of equity market with diversification</li></ol>Funds in theme of Income Generators#:AllianzGI, Blackrock, Janus Henderson, JPMorgan Asset Management and SchroderPlease log in to WeLab app &gt; “GoWealth” at the right bottom &gt; “Pick your own funds” &gt; “Featured Funds” &gt; “Income Generator”#For fund information, please log in to the Featured Funds Services of WeLab Bank app to browse the fund theme.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.

Investment expert teaches you how to analyze in 3 mins

On August 1, Fitch Ratings downgraded the U.S.’ long-term credit rating from AAA to AA+.While looked surprising as it came after June’s resolution to the debt ceiling negotiations, investment managers do not regard the action a surprise as Fitch Ratings had said back in May that the U.S. was under a negative rating watch, and S&amp;P already downgrade the U.S. to AA+ in 2011.Only Moody’s, the remaining major ratings agency to maintain its AAA rating on U.S. debt. This downgrade makes the rating of the US more consistent with those of other countries: France and the United Kingdom are AA; Japan is A; and Germany, Switzerland, and Singapore are AAA.The action said anything to U.S.’s ability to repay its debt?The answer is “very little”. Fitch defines AAA borrowers exhibit “exceptionally strong capacity” to meet their financial commitments, whereas AA issuers exhibit “very strong capacity.” In investment managers’ view, the differences are more nuanced than they are pronounced.Investment managers’ outlook on the situationAs a result of the tightening of credit conditions and the cumulative effect of 5.25% of rate hikes, the U.S. economy is expected to soften in the months ahead and inflation to continue to moderate. Investment managers believe that risk markets are pricing in a relatively soft landing. The sheer volume of debt owed by governments, corporates, and individuals nevertheless means that rates don’t need to climb as far as in the past to have the identical effect. Consequently, investment managers think the Federal’s interest rate tightening cycle – increasing interest rates to cool inflation – is nearing the end, and it is positive for bond markets.Investment managers’ strategy moveLonger-dated bonds offer a wider potential for capital gains, although they also come with increased interest rate risk. Therefore, investment managers carry on favoring harvesting yields on the short end of the yield curve, while selectively adding duration* to provide much-needed defensive characteristics in the case of an economic slowdown.Global risk appetite may start rising later this year as markets ultimately look forward to and discount an economic recovery next year.What needs to be watched out for?<ul><li data-block-key="7imk4">Some digestion of stock market gains and the potential for a minor pullback in the near term as markets reprice when the Fed begins to cut rates.</li><li data-block-key="8ok6q">US yields may potentially move higher because of a confluence of developments, including this downgrade.</li><li data-block-key="bvec6">The issuance of more US debt.</li></ul>* Duration measures a bond price’s sensitivity to changes in interest rates. The longer a bond’s duration, the higher its sensitivity to changes in interest rates, and vice versa.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Fitch downgrades US credit rating from AAA to AA+

&quot;I need some quick cash! Which bank should I borrow money from?&quot; No matter how pressing the matter, it&#x27;s crucial to first grasp the fundamental concept of personal loans. Today, WeLab Bank will walk you through the key considerations for personal loans and provide a comparison of loan plans among digital banks, traditional banks, and financial companies.A personal loan refers to individuals applying for loans from banks or other financial companies for personal use, investments, or other non-business purposes. Personal loans fall under the category of unsecured loans, meaning no collateral is required. Repayment is structured with fixed monthly amounts over a set period. Early repayment may incur an additional fee known as a penalty interest. Various loan product categories exist in the market, including mortgages, cash-out refinancing, car loans, revolving loans, tax loans, and more.Calculating Loan InterestWhile loans serve different purposes, most common loan in the market is installment loan. Although the monthly repayment amount remains consistent, the proportion of principal and interest within each installment can vary. The proportion of interest and principal in each monthly repayment is calculated according to the Straight-line method or Rules of 78. Let me tell you what the Straight-line method is. In this method, the interest is calculated based on the outstanding principal and allocated to the repayment period. The amount of monthly repayment apportioned to interest is the highest at the beginning and gradually decreases across the repayment periods.Illustration of showing the proportion of interest and principal in each monthly repayment using straight-line method, and the monthly interest decreases as the principal decreases:A customer borrows HK$120,000 (i.e. the loan principal) for 12 months, at a monthly flat rate of 0.14% and handling fee is waived. Annual Interest rate is 3.09% and APR is 3.13%.Monthly interest = HK$120,000 x 0.14% = HK$168Total interest for the full term = HK$168 x 12 months = HK$2,016Monthly repayment = HK$(120,000 + 2,016) ÷ 12 = HK$10,168First Term interest= HK$120,000 x 3.09% ÷ 12 = HK$308.7First Term principal= HK$ (10,168-308.7) = HK$9,859.3Second term interest = HK$ (120,000-9,859.3) x 3.09% ÷ 12 = HK$283.6If mathematics isn&#x27;t your strong suit, this may seem a bit perplexing. Simply put, during the initial stages of repayment, the interest portion outweighs the principal portion. As the repayment progresses, the principal portion increases while the interest portion decreases.Understanding Effective Annual Interest Rate and Monthly Flat RateBefore selecting a suitable loan institution, as an astute borrower, it&#x27;s essential to acquaint yourself with key terms such as &quot;Monthly Flat Rate&quot; and &quot;Annual Percentage Rate (APR).&quot; So, what exactly is the Monthly Flat Rate? Let&#x27;s assume you borrow HKD 10,000 for 12 months with a Monthly Flat Rate of 1%. This implies that you&#x27;ll pay HKD 100 in interest each month, resulting in an annual interest of HKD 1,200. Many financial companies entice customers with exceptionally low Monthly Flat Rates, sometimes even below 0.1%. However, the Monthly Flat Rate alone doesn&#x27;t provide a comprehensive picture of the borrowing cost. Conversely, the &quot;Annual Percentage Rate&quot; combines loan interest with various fees, converting them into a reference annual interest rate. This helps consumers compare the borrowing costs of different loan products. When comparing, it&#x27;s crucial to consider the APR.Important Considerations before Applying for a LoanNow that you’ve done comparing the borrowing costs, are you good to proceed with the application? Hold on! Before applying for a loan, there are other factors to be mindful of.<ul><li data-block-key="b90m">Evaluate your personal repayment ability and loan amount: Each loan plan has a different maximum borrowing limit. However, being eligible for a loan does not mean you should borrow to the maximum. Before applying, consider your actual needs and repayment capability.</li><li data-block-key="a0c8u">Pay attention to hidden details and additional charges: There&#x27;s no such thing as a free lunch. When choosing a loan, be cautious when you see &quot;0% interest&quot; or extremely high cashback offers. Be aware that besides interest, there may be additional fees such as processing fees, annual fees, and penalty interest. Therefore, when calculating the borrowing cost, remember to take other related fees into account.</li></ul>Comparison of Digital Banks, Banks, and Financial Companies for LoansAfter understanding the important considerations, many people might wonder which bank is the best for borrowing money and what advantages financial companies offer. Let&#x27;s dive into a loan comparison and analyze the differences between digital banks, traditional banks, and financial companies! In Hong Kong, institutions that provide personal loans can be broadly classified into two main categories: traditional banks and financial companies. Traditional banks offer better interest rates to customers with good credit records, but the approval process is lengthy and the application procedures are complex. On the other hand, financial companies provide some quick approval options and online personal loans, and they tend to be more lenient towards customers with lower credit scores. However, the trade-off is higher interest rates. In comparison, digital banks combine the best of both worlds:<ul><li data-block-key="3o5r3">Competitive loan interest rates: Loan interest rates depend on various factors such as the individual&#x27;s debt situation, past repayment records, and TU credit ratings. However, digital banks generally offer competitive interest rates, and in some cases, the lowest actual annual interest rates can even be lower than those offered by traditional banks.</li><li data-block-key="ao6v6">Simplified application process: Digital banks leverage financial technology, making the loan application process simpler. Loan applicants are often not required to submit income proof, and the banks can utilize advanced systems and big data analysis for faster approval. However, it&#x27;s worth noting that some digital banks may request additional supporting documents based on individual circumstances.</li><li data-block-key="4974p">Fast approval time: While some traditional banks and financial companies claim to offer fast approval for loans, digital banks can further expedite the process through their technological capabilities. For instance, WeLab Bank can achieve same-day fund transfers1 in the fastest cases.</li></ul>WeLab Bank Loan ProductsBefore borrowing, it is crucial to carefully consider various factors and conduct a comprehensive loan comparison to select the most suitable personal loan solution based on individual financial circumstances. Are you in need of financial assistance? WeLab Bank offers a wide range of loan products tailored to different needs.<ul><li data-block-key="bfg8v">Personal Installment Loan: Whether it&#x27;s for significant or minor expenses, you can make use of the personal installment loan to fulfill your dreams, such as purchasing a car, renovating your home, funding education, traveling etc. WeLab Bank&#x27;s personal installment loan offers loan amounts of up to HKD 1,500,000 or 18 times your monthly salary (whichever is lower) and boasts actual annual interest rates as low as 1.27%2. The repayment period can range from as short as 6 months to as long as 60 months, granting you greater flexibility.</li><li data-block-key="579i6">Debt Consolidation Loan: When faced with difficulties managing multiple credit card balances or personal loan balances, paying only the minimum amount does not provide much relief. WeLab Bank&#x27;s debt consolidation loan allows you to consolidate the balances from multiple credit cards or loan into a single low-interest loan with a fixed term, facilitating more effective debt management.</li></ul>In addition, WeLab Bank also offers the Tesla Unsecured Loan and the Subscribe+ for Apple Products feature. Whether you want your dream car or sought-after electronic products, we can help you acquire them more easily! Still undecided on which bank to borrow money from? WeLab Bank might just be the perfect answer!To borrow or not to borrow? Borrow only if you can repay!1 The estimated period is calculated from the day the loan agreement is signed. The actual approval period and the actual time the loan is disbursed may vary upon information provided by the applicants.2 Assume the loan amount as HKD700,000 with tenor of 24 months, the APR will be 1.27% (inclusive of HKD3,000 cash rebate) or 1.68% (excluding cash rebate). The APR is calculated according to the guidelines issued in respect of the Code of Banking Practice and rounded to the nearest 2 decimal places and may vary for individual customers. Customers should refer to their loan confirmation letters for the relevant information and such information shall prevail. The APR only applicable to designated loan amount and tenor and for reference only. The final approved interest will be subjected to the bank’s approval.

WeLab Bank shares the key considerations for personal loans and provide a comparison of loan plans among digital banks, traditional banks, and financial companies.

Choosing Personal Loans: A Comparison of Digital Banks, Traditional Banks, and Financial Companies │ WeLab Bank

This document only available in Tradition Chinese version only.

2024年六大基金公司投資展望

For many investors, the hottest topic this year is undoubtedly the US interest rate cycle. Will the US interest rate cycle come to an end? When will it end? If it continues, how many more times will it increase? Two times? Or several times?In the current market conditions, what opportunities are there and what areas should we pay attention to? To help investors clarify these questions, we held an investment seminar on July 20, inviting top global investment institutions to exchange investment insights and share their views with investors. Regarding the US interest rate cycle, PIMCO expert provided the following insights for reference.PIMCO&#x27;s 3 important points:<ol><li data-block-key="1j5ga">PIMCO experts believe that whether the US interest rate cycle continues in the second half of 2023 is not important, as what is important is that interest rates are about to peak.</li><li data-block-key="13qsb">PIMCO experts expect that the easing cycle will begin in the first or second quarter of next year. Past data has shown that during the easing cycle, debt performance is better than fixed deposits, and investors can pay attention to bond funds.</li><li data-block-key="4hhf">If investors are concerned about an economic recession, they can pay attention to high-rated bonds, with an annualized dividend yield of about 4%-5%.</li></ol><div class="video-container" src="https://www.youtube.com/embed/s4yxf5RXvEE"><iframe src="https://www.youtube.com/embed/s4yxf5RXvEE"> </iframe></div>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Weekly insight: Has the US interest rate cycle peaked?

Since the emergence of Generative AI, there have been rumors that it has the ability to disrupt different industries and bring challenges and impacts to them. This technology will change the entire game rules. Generative AI requires a large amount of data input and powerful data processing capabilities, which can only be provided by cloud computing. This creates an attractive investment opportunity for investors.The future of AI lies in cloud computingThis new force of AI has clearly brought about significant development and change in our lives and work. The computation power and infrastructure required to train AI models and assist companies in applying this technology are huge.AI is a new technology that involves various aspects and training techniques, including robotic process automation, deep learning, machine learning, natural language processing, and virtual agents. These models require a large amount of data and powerful computing capabilities for training and operation. Only super-scale cloud service providers can handle this huge data processing task. Even large companies need to continue to expand to cope with the increasingly complex data processing. The generative AI technology that belongs to large language models is the same.Importance of AI and cloud computing towards investorsCloud spending is expected to continue to grow. However, many investors believe that this AI industry has entered the middle of its life cycle. Since 2017/2018, the industry has been researching and training individual GPT models, but it wasn&#x27;t until ChatGPT and Midjourney AI drawing programs were introduced that the potential of Generative AI became widely known, shocking consumers and corporate executives alike. They are required to understand how Generative AI will bring important changes to our lives and work.So, which companies have prepared for this early? Which companies, although new to Generative AI technology, have the potential to benefit from it? And which companies will be the latest to embrace the new era of Generative AI? These analyzes will be an opportunity for investors. Investing in Global AI Stock StrategyGenerative AI technology only became widely known after the introduction of ChatGPT and DALL-E, and its unsupervised machine learning and deep learning applications shocked the world. We believe that we are currently at a turning point, where companies will accelerate their deployment of AI applications in enterprises to change their business models.Industries driven by AI may benefit as Generative AI growsGenerative AI is rapidly reshaping the entire technological landscape. It requires a large amount of data and powerful computing capabilities, making it manageable only for large-scale cloud service providers. As a result, industries related to AI, such as semiconductors and semiconductor equipment, are expected to benefit. Additionally, in the growth of Generative AI, AI-driven industries such as cloud-based software and services are also expected to reap the benefits.At the same time, many software companies have launched Generative AI components to automate processes, help clients execute tasks, and generate valuable insights from data.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Weekly insight: Is Generative AI the future of investment opportunities?

It is no doubt AI technology will become the latest megatrend. From the explosion of GPT-4 to the recent surge in stock prices of chips company, these events show market’s positive sentiment towards the sector.Considering to get benefits from the trend? You may think AI-related stocks are overpriced right now, but there is actually more than 1 way to invest into AI technology. Here is a 3 min guide on how.Reminder: Through WeLab Bank’s Featured Fund Services, you can invest easily into popular funds related to AI or other themes to capture the potential megatrend with HKD 0 Fee^!<h4 data-block-key="bbm5t">Related Theme in WeLab Bank Featured Fund Services</h4><img alt="fund_ai_tech" src="/media/images/fund_ai_tech.width-800.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/><h4 data-block-key="tvg1">AI Technology</h4><ul><li data-block-key="i2e65">One of the most popular themes among WeLab Bank customers</li><li data-block-key="70eqv">Funds under this theme invest majority into technology-related firms in the developed market, including the whole of the supply chain.</li><li data-block-key="6sl1n">The latest 3-Year total return: 17.8% - 34.5%#</li></ul><h4 data-block-key="k5n4p">Featured Funds of AI Technology</h4><img alt="ENG_fund_ai_table" src="/media/images/ENG_fund_ai_table.width-800.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/>#Data as of 30 June 2023. The table lists out all the funds under such themes and the past 3-year total return of the funds. The figures are provided by Morningstar Asia Limited and are for information only and not guaranteed. We do not take responsibility for and do not endorse the accuracy of such information. Past performance is not indicative of future results. The information set out in the table above is for reference only and does not constitute any comment, recommendation, solicitation, offer or sale of any investment product.Below are the captioned fund’s calendar year return since 2018, as of 30 June 2023 JPM US Technology: 2023 YTD: 46.4%; 2022: -44.9%; 2021: 12.8%; 2020: 87.0%; 2019: 41.3%; 2018: 3.6%。Allianz Global Artificial Intelligence: 2023 YTD: 35.8%; 2022: -45.6%; 2021: 7.9%; 2020: 100.5%; 2019: 28.9%; 2018: -5.4%。BGF World Technology: 2023 YTD: 34.3%; 2022: -44.1%; 2021: 12.8%; 2020: 86.9%; 2019: 43.5%; 2018: -0.3%<h4 data-block-key="e4k73">Insights from WeLab Bank Investment Experts</h4><h4 data-block-key="fjnxa">Worried that AI is overpriced? Invest smartly into the entire supply chain</h4>Everyone says AI is going to be transformative, turbocharging the economy. But there aren’t much analysis on “how”?Overall speaking, AI is a technology which helps all of us to “produce more, with less work”. For example, an AI-driven chatbot might be able to answer most of the questions from banking customers, freeing up employees to spend more time selling services or provide a better in-person experience to the bank’s clients.So how do you invest in AI?The ecosystem consists of 3 groups: companies that sell AI as a product or a service, companies that build AI models and develop the wider infrastructure, and companies that are building the hardware necessary for it all to work.Although AI has been a hot topic in the market for a while, but investment opportunities do not limit to the common household names. But if investors want to expand their reach to the full supply chain, it may cost them a lot of effort and time.Investors can consider investing through global asset managers. Relying on the expertise of investment professionals, investors may have exposure to the whole technology sector ecosystem, capturing opportunities while capturing the long term growth of the sectors.<p class="image-container " data-img-alt="GoWealth_Focus_June(Kai)EN.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_Focus_JuneKaiEN.width-800.jpg" element-type="image"><img alt="GoWealth_Focus_June(Kai)EN.jpg" src="/media/images/GoWealth_Focus_JuneKaiEN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><p class="image-container " data-img-alt="GoWealth_SingleFund(banner-desktop)EN_R.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_SingleFundbanner-desktopEN_R.width-800.jpg" element-type="image"><img alt="GoWealth_SingleFund(banner-desktop)EN_R.jpg" src="/media/images/GoWealth_SingleFundbanner-desktopEN_R.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>^From 5 June to 4 August 2023, the Fund Platform Fee Monthly Rate applicable to the Featured Funds Services is 0%. Terms and conditions apply. For details, please visit <a href="https://www.welab.bank/media/documents/platform_fee_waiver_tnc.pdf">HERE</a>. Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Featured Funds’ Focus of the Month: AI Technology

Same pressure, different outlookThe start of the second half of 2023 saw overall pressure on the major stock markets during the first week of July. The Federal Reserve&#x27;s declaration that interest rates will continue to rise dampened the market sentiment, causing the Dow Jones to fall below the 33,700 level; the S&amp;P 500 remained flat, holding onto the 4,400 level with short-term support at 4,350 and 4,300; and the Nasdaq, which has seen significant gains since the beginning of the year, failed to breach the 14,000 mark and remained around 13,700, with the market indicating that US stocks still have the upper hand.On the other hand, the situation in the Hong Kong stock market is markedly different. While it attempted a rebound at the start of the week, with an unsuccessful push to 19,400, it suffered two consecutive days of decline afterwards, breaking several moving averages and reaching a low not seen in over a month. At the point where the market fell by over 500 points, trading volume quickly approached HKD 100 billion, reflecting considerable selling pressure.Interest rates tackle inflation, but fail to consider the economyThe market believes that major central banks will not relax their monetary policies in the short term when there is a shortage of goods and services. This is especially true for countries like the United States, where labor shortages prevent large-scale production of goods. It is expected that central banks in various countries will implement monetary tightening policies to avoid causing high inflation and to adjust supply-side pressures.For a long time, the Federal Reserve of the United States has maintained loose monetary policies to help economic development by keeping interest rates low during economic recessions. However, the situation is now changing. Most fund managers and investment experts believe that if there is an economic recession, the Federal Reserve of the United States will not be able to intervene in time as it did before. Supply-side constraints will persist, causing central bank interest rates to remain high, which will neither stimulate nor suppress economic growth, suggesting that interest rates will remain at restrictive levels.New perspectives to beat the marketWhen the overall economy performs poorly, it has a negative impact on the performance of the overall asset class. It is important to study the price response of each asset to the overall economy and predict their future performance. We also need to pay attention to global trends such as new technologies like digitization and artificial intelligence, and environmental changes such as geopolitical fragmentation, low-carbon transformation, aging populations, and new generations of financial markets to see if there are any investment opportunities in these areas.The core key to investing is how asset prices respond to various factors. We can see that many major trends are increasing current and future investment returns. For example, the rapid rise of the stock market this year, and the recent drop in semiconductor stocks due to US export restrictions on China, show us how new technologies and environmental changes interact to influence market trends.More and more countries and industries are starting a new investment cycle to increase operating income and profit margins. Fund managers attach great importance to the impact of artificial intelligence on investment. In addition, geopolitical fragmentation is causing changes in supply chains around the world, and the importance of national security and supply chain resilience is increasing, which is more important than efficiency. Moreover, expert analysis shows that investment in technology, clean energy, infrastructure, and defense will increase significantly. A large amount of funds is being transferred to low-carbon transformation, and the entire market is changing as a result. Fund managers also observe that in the rapidly developing financial system, existing banks will face regulatory and competitive challenges, and non-bank lending institutions have the opportunity to develop as a result.Interest rates not falling, bonds continue to be popularThe world&#x27;s economic growth is slowing down, and major central banks are implementing economic austerity policies in the new market environment of the overall economy, leading to increased attractiveness of yield-based assets.In addition, policies in emerging markets seem to be starting to loosen, and fund managers are optimistic about emerging market bonds, especially in Asian emerging markets. The inflation fluctuations that Asian emerging market companies can withstand are different from those of developed markets, reflecting stronger profit margins for Asian emerging market companies and more optimistic growth prospects. It is believed that the upward potential of Asian credit is higher than that of developed markets.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Weekly insight: New perspectives to beat the market

After 10 Interest-Rate Hikes, the Fed finally stopped! What opportunities should investor look at?The Fed has announced that it is leaving the Fed Fund Rate stable at the same level, first time since March last year.Yet in fact, the slow down of rate hike is not a news to the market, and because of that investors have slowly turned their focus to high quality and conservative fixed income asset, while anticipating the end of the rate hike cycle.Based on the latest data1, bond fund has become the most popular asset class of HK investors in the first quarter this year. The gross subscription inflow has increased over 100% against Q4 2022.Through WeLab Bank’s Featured Fund Services, you can invest easily into popular funds to capture the potential megatrend with HKD 0 Fee^!<a href="https://www.welab.bank/en/feature/fund/">Learn more</a><h4 data-block-key="6ggwr">Related Theme in WeLab Bank Featured Fund Services</h4><p class="image-container " data-img-alt="GoWealth_Focus_June(Themes).jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_Focus_JuneThemes.width-800.jpg" element-type="image"><img alt="GoWealth_Focus_June(Themes).jpg" src="/media/images/GoWealth_Focus_JuneThemes.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><h4 data-block-key="t8u99">Global Income</h4><ul><li data-block-key="3glj8">One of the most popular themes among WeLab Bank customers</li><li data-block-key="z9jua">Funds under this theme invest majority into global fixed income.# The asset class faced pressure last year due to the rate hike environment. The market is anticipating market entry opportunities when the rate cycle turns.</li><li data-block-key="ebrmc">The latest annualised dividend distribution is from 5.1% to 5.7%#</li></ul><h4 data-block-key="ofmql">Featured Funds of Global Income</h4><p class="image-container " data-img-alt="EN_GoWealth_Focus_June(Chart2).png" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/EN_GoWealth_Focus_JuneChart2.width-800.png" element-type="image"><img alt="EN_GoWealth_Focus_June(Chart2).png" src="/media/images/EN_GoWealth_Focus_JuneChart2.width-800.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/><a href="https://www.welab.bank/en/feature/fund">Other hot fund ideas</a>#Data as of 31 May 2023. The table lists out all the funds under such themes and the latest annualised yield, year to date total return and past 3-year return of the funds. The figures are provided by Morningstar Asia Limited and are for information only. We do not take responsibility for and do not endorse the accuracy of such information. Past performance is not indicative of future results. Dividend funds listed above aim to pay dividend on a monthly basis. Dividend payout is not guaranteed and may be paid out of capital. The information set out in the table above is for reference only and does not constitute any comment, recommendation, solicitation, offer or sale of any investment product. Below are the captioned fund’s calendar year return since 2018, as of 31 May 2023. JPM Income: 2023-to-date: 0.81%; 2022: -8.3%; 2021: 2.2%; 2020: 3.1%; 2019: 11.4%; 2018: 0.4%. PIMCO Income II: 2023-to-date: 2.3%; 2022: -8.5% (The fund inception date is 29 Jan 2021). Allianz Global Opportunistic Bond: 2023-to-date: 1.7%; 2022: -5.0%; 2021: -2.5%; 2020: 6.2%; 2019: 7.1%; 2018: -1.8%<h4 data-block-key="iqa10">Insights from WeLab Bank Investment Experts</h4><h4 data-block-key="89x9n">Bond Market: Receive high dividend while capturing for the potential capital gain</h4>The current bond yield level is very attractive.Since the 10 consecutive rate hikes to 5%-5.25%, the 10Y US Treasury Bond Yield has since risen to 4.07% high earlier this year.That implies that if you invest into high quality, lower default risk fixed income asset, e.g. US Treasury or investment grade bond, you can enjoy a decent dividend yield given the low price. For instance, at the rate of the aforementioned US treasury yield.When interest rate peaked, it creates room for bond price to grow.The price of bond and interest rate has always been an negative correlation. For example, the rate hikes in the past 1+ years have caused huge downward pressure to the bond price. But coming back to today’s scenario, if the Feds really stopped its rate hike or even lowering the rate in the future, this will propel the bond price to an upward direction.Looking from another angle, the bond yield currently is at its highest point in 5 years. If you look at the past 5 times when bond yield peaked, the bond price performance of the following year has been very appealing. This again shows the opportunity we see today.To sum it up, it is obvious that the change of the interest rate cycle provides opportunities to the market. Bond investment can on one hand provide you regular income, on the other hand give you the possibility of capital appreciation.<p class="image-container " data-img-alt="EN_GoWealth_Focus_June(Chart1).png" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/EN_GoWealth_Focus_JuneChart1.width-800.png" element-type="image"><img alt="EN_GoWealth_Focus_June(Chart1).png" src="/media/images/EN_GoWealth_Focus_JuneChart1.width-800.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/>The One-year return of the US Agg of the above market events are calculated from: 1990 Bond Market Crash: 26 April 1990; 2000 Dot Com Bubble: 18 May 2000; 2008 Global Financial Crisis: 31 October 2008; 2013 Taper Tantrum: 5 September 2013; COVID-19: 19 March 2020. The figures are obtained from the reliable sources and are for information only. We do not take responsibility for and do not endorse the accuracy of such information. Past performance is not indicative of future results.<p class="image-container " data-img-alt="GoWealth_Focus_June(Kai)EN.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_Focus_JuneKaiEN.width-800.jpg" element-type="image"><img alt="GoWealth_Focus_June(Kai)EN.jpg" src="/media/images/GoWealth_Focus_JuneKaiEN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><p class="image-container " data-img-alt="GoWealth_SingleFund(banner-desktop)EN_R.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_SingleFundbanner-desktopEN_R.width-800.jpg" element-type="image"><img alt="GoWealth_SingleFund(banner-desktop)EN_R.jpg" src="/media/images/GoWealth_SingleFundbanner-desktopEN_R.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>*As of 31 May 2023, the annualised dividend yield of JPM Income (USD)(Dividend) under “Global Income” theme is 5.7%. The fund aims to pay dividend on a monthly basis. Dividend payout is not guaranteed and may be paid out of capital. “Potential Gain” refers to the above market insight of bond funds performance in general. This information is for reference only and does not constitute a forecast or guarantee of performance of any fund. ^From 5 June to 4 August 2023, the Fund Platform Fee Monthly Rate applicable to the Featured Funds Services is 0%. Terms and conditions apply. For details, please visit <a href="https://www.welab.bank/media/documents/platform_fee_waiver_tnc.pdf">HERE</a>. 1Based on the publicly published date on subscription and redemption from the HKIFA (2023 to date)Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Featured Funds’ Focus of the Month: Global Bond Income

With the market flooded with lunchboxes claiming to be &quot;inflation-resistant,&quot; can your income keep up with the rising prices in the current inflationary environment? To effectively combat inflation, learning about investment planning can help you potentially gain returns. However, as a beginner investor, if you want to grow your wealth further and gradually achieve your financial goals, you need to pay attention to the following basic investment concepts and key factors!What is investing?Investing involves placing your assets in different places to achieve the goal of preserving their value, and expecting additional returns in the future. Therefore, before investing, you should choose investment tools for basic analysis, evaluate various risks based on factors such as the financial or operational condition of the company, and make appropriate investment amounts. Generally, the lower the product risk, the lower the potential return.Choose investment products carefullyWhile stocks, bonds and funds may seem similar, there are significant differences! As a beginner, can you distinguish between these investment products?<ul><li>Stocks: Stocks are a way for companies to raise funds by selling ownership stakes. Once you become a shareholder, you may have the opportunity to receive dividends and bonuses when the company earns profits. Stocks are usually bought and sold in the trading market, and investors can consider various factors and decide the timing of buying and selling based on the company&#x27;s stock price performance to profit from trading.</li><li>Bonds: When investors purchase bonds from issuing institutions, it is equivalent to lending funds. The issuing institution is required to pay interest and repay the principal according to the terms of the bond when it matures.</li><li>Funds: Funds pool funds from different investors for investment, and the investment strategy and portfolio of the fund are formulated and managed by a fund manager. Buying a fund is equivalent to buying a basket of assets.</li><li>Derivative instruments: Financial instruments derived from underlying financial commodities such as stocks and bonds, subject to high regulation. Derivative instruments can be understood as a &quot;trading contract.&quot; For example, in the case of stock futures, the contract specifies the financial value of a certain number of stocks to be bought or sold at a predetermined price on a specified date in the future. Because the terms of the contract for different derivative instruments vary, the risks are relatively high, and they may not be suitable for ordinary investors.</li></ul>Every type of investment involves risks, and the choice depends on the specific circumstances of the investor. Investors should consider their financial plan progress, assess their risk tolerance, and choose an investment portfolio that is suitable for themselves.Common Mistakes for BeginnersAs a beginner in investment and wealth management, have you ever made the following two common mistakes?<ul><li>Trend-chasing: When it comes to investing and managing wealth, beginners often receive investment related information from peers or the internet and blindly rush into the market without proper analysis. However, factors such as a company&#x27;s financial status, industry outlook, and political factors can all have an impact. Therefore, blindly following and investing based on market news and rumors may not be the most accurate approach.</li><li>Being too impatient: Without proper analysis, investors who make buying or selling decisions based solely on market fluctuations often end up losing more than they gain.</li></ul>Therefore, investment and wealth management are not hearsay. It is important to conduct comprehensive analysis for investment products each time, and avoid making decisions based solely on short-term performance.Key Points for Beginner Investment and Wealth Management<ul><li>Understanding investment objectives clearly: Beginners need to understand their investment objectives in order to decide on suitable investment plans and products. Diversified investment portfolios or long-term holding of some investment products can be chosen for risk diversification and reduction.</li><li>Saving unnecessary expenses: Consider investing in assets with lower management fees to help reduce investment costs and achieve cost-saving effects for investment and wealth management.</li><li>Reviewing and adjusting investment portfolios in a timely manner: Everyone&#x27;s risk tolerance will change with different stages of life. It is important to review investment strategy timely and adjust investment portfolios accordingly to suit the situation for investment and wealth management.</li></ul>WeLab Bank&#x27;s GoWealth Digital Wealth Advisory provides personalized advice based on your investment objectives, helping you embark on smart investment and wealth management. For more information, check out: <a href="https://bit.ly/3NST2g1">https://bit.ly/3NST2g1</a>If you want to get more investment inspiration and insights and stay in the know of the latest market trends, you can subscribe our YouTube channel and watch our WeLab Bank Wealth Insight video series: <a href="http://bit.ly/3AW4K1q">http://bit.ly/3AW4K1q</a>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Investment 101, investment basic concepts, fund investment

Investment Guide: Key Financial Concepts Every Beginner Should Know

As inflation continues to rise and the purchasing power of paper currency decreases, the general public is seeking ways to fight inflation, and investing in funds is a popular option. Want to try investing in funds but don&#x27;t know where to start? This article is just right for you. Let&#x27;s explore the types of funds, how fund investment works, and what to pay attention to. WeLab Bank will guide you through it all!What is a mutual fund?Mutual funds is a type of investment tool that pools the funds from many investors. The funds are managed and operated by a team of professional managers with an aim to increase wealth. Fund managers typically diversify funds by investing into different assets or projects, such as stocks, bonds, money market instruments, and other assets. Through subscribing into funds, investors can use a lower amount of funds to invest into ideal portfolios, thus achieving their investment goals.What are the different types of funds?Funds can be classified in various types, depending on the way they raise funds or by being classified as private equity funds. Private equity funds are only sold to a small number of investors, with a high investment threshold, making it difficult for most investors to participate. The most common funds in the market are mutual funds and unit trusts, which have slight differences in their establishment, the number of shares that can be issued, and regulatory requirements. Funds can also be further classified based on the investment target, management method, and investment region.Classification by investment target:<ul><li data-block-key="0mbb3">Money market funds: invest in various money markets, mainly short-term investments, with high liquidity and relatively low risk.</li><li data-block-key="uvzyz">Bond funds: invest in different types of bonds, stable income, and low to medium risk.</li><li data-block-key="7wh9h">Equity funds: invest in various types of stock assets, which is equivalent to investing in multiple stocks at the same time, with higher potential returns and risks.</li><li data-block-key="ig21h">Mixed funds: diversify investments in different assets such as stocks and bonds, with risks depending on the stock-bond ratio.</li></ul>Classification by management method:<ul><li data-block-key="8j1bh">Active management: the fund manager determines the investment target, investment strategy, and market entry and exit time to achieve a performance goal that surpasses the market index.</li><li data-block-key="9h4on">Passive management: the investment objective tracks the performance of a specific market index, and the objective &quot;rises and falls together&quot; with the overall market trend, with less impact from individual stock fluctuations.</li></ul>Classification by investment region:<ul><li data-block-key="js2yi">Global Funds: Lower risk, widest investment scope, relatively conservative.</li><li data-block-key="c3361">Regional Funds: Moderate risk, suitable for investors with preferences for specific regions, such as Europe, America, Southeast Asia.</li><li data-block-key="pc17c">Single-Country Funds: Higher risk, suitable for those who have high confidence in the assets of a single country.</li></ul>The above are common classification methods for fund investments. Funds can also be further categorized based on industry sectors, issuers, issuance methods, etc. If you are interested, you can further explore these categories in detail.Who is suitable for mutual fund investment?For investment beginners or people who do not have time to analyze the stock market, mutual fund investment can be a good choice. Compared to buying individual stocks, mutual funds generally invest in different industries and regions, and hold at least dozens of stocks or other securities, so you can also benefit from the professional management from fund managers. Therefore, mutual fund investment can generally achieve the function of risk diversification. On the other hand, mutual fund investment is also suitable for long-term investors, since funds generally have stable growth over the years, achieving long-term value appreciation for your assets.How do mutual funds operate?After investors purchase mutual funds through fund platforms, banks, securities firms, etc., the fund manager will typically consolidate the funds and then diversify the investments. When the fund receives dividends (or coupons) from the investment portfolio, the fund company may distribute a certain percentage of such income to investors. On the other hand, investors can also choose to redeem the fund to realize gains from price differences.What should you pay attention to when investing in funds?Although fund investment is generally considered one of the safer investment methods, it still involves risks, and there are certain things to be aware of and understand before making an investment decision, such as:<ul><li data-block-key="eks2v">Derivative costs: Fund investment may involve transaction fees, management fees, redemption fees, and other costs, which directly affect the rate of return. Therefore, pay close attention to the relevant fee structure and evaluate the costs before making a decision.</li><li data-block-key="73sib">Choosing fund companies and managers: The performance of fund investment largely depends on the professionalism and management ability of the fund companies and managers. Therefore, investors need to pay attention to the reputation of the fund companies and managers, as well as their investment strategies. Investors can also refer to their previous investment performance and size of assets under management.</li><li data-block-key="2itsb">Assessing risk tolerance: Risk and return are often interrelated. Therefore, before investing in funds, investors should consider the nature of the funds, evaluate the risks, and combine it with their own circumstances to independently assess and choose funds that are suitable for themselves.</li></ul>After reading this, do you have a better understanding of fund investment? Click on the WeLab Bank website to learn more about personalized fund investment portfolios that suit your preferences: <a href="https://bit.ly/3NST2g1">https://bit.ly/3NST2g1</a>If you want to get more investment inspiration and insights and stay in the know of the latest market trends, you can subscribe our YouTube channel and watch our WeLab Bank Wealth Insight video series: <a href="http://bit.ly/3AW4K1q">http://bit.ly/3AW4K1q</a>Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Want to try investing in funds but don't know where to start? Explore with WeLab Bank the types of funds, how fund investment works, and what to pay attention to.

A Beginner’s Guide for Mutual Fund Investors | WeLab Bank

A Beginner’s Guide for Mutual Fund Investors │ WeLab Bank

With so many credit card promotions and offers, it&#x27;s easy to accumulate credit card debt that may exceed your financial capacity. Paying only the minimum payment can result in the debt snowballing, and it may take years to clear the debt. If you find yourself constantly battling credit card debt every month, you may want to consider a balance transfer, also known as debt consolidation loan program that offers a solution to tackle the problem of growing debt and take the approach the clear all debt in one go.What is a Balance Transfer?A balance transfer, also known as a debt consolidation loan, is a loan program offered by banks or financial institutions that consolidates a customer&#x27;s credit card balances, bank loans, or loans from financial companies into one loan with a lower annual interest rate, helping customers clear the debt in one go. Customers can also save on additional interest expenses and reduce their monthly repayments.What are the Benefits of Balance Transfer?<ul><li data-block-key="8wdg7">Savings on Interest Expenses: The actual annual interest rate on most credit cards is generally over 30%, and if you only make minimum payments, the interest is calculated on a compounding basis, and the repayment period becomes long and uncertain. In comparison, the actual annual interest rate of a balance transfer loan is lower, ranging from about 5% to 19%, and the loan interest is calculated using the reducing balance method, with a relatively short repayment period, which helps people with credit card debt to regain financial freedom quickly.</li><li data-block-key="udlcv">Reduced Repayment Pressure: The repayment period of this type of debt consolidation loan is also more flexible, allowing customers to tailor a repayment plan for their credit card debt according to their personal financial needs and circumstances, such as extending the repayment period to reduce the total monthly repayment amount and ease the monthly repayment pressure.</li><li data-block-key="vyxey">Assistance with Cash Flow Management: Some balance transfer debt consolidation loans also offer cash withdrawal services, which allow customers to withdraw additional cash for emergency use even when repaying credit card debt and other debts.</li><li data-block-key="sne7u">Convenience: As this type of debt consolidation loan helps consolidate and repay different credit card debts and loans in one place, customers only need to deal with debt repayment at one bank or financial institution, making the process simpler and avoiding the risk of penalty for forgetting different debt repayment dates.</li><li data-block-key="gjqlu">Improved Credit Score: Debt consolidation loans can help improve credit scores by consolidating and repaying different credit card debts and loans, thus avoiding a decrease in credit score due to default on different debts. If customers can repay on time, their credit score may gradually improve.</li></ul>Is Balance Transfer the Same as Personal Instalment Loans?Although the nature of a balance transfer is similar to that of a personal instalment loan, the two are different in terms of loan purposes and loan disbursement methods.<ul><li data-block-key="xsea6">Balance transfer: Primarily aimed at debt repayment, this loan method usually involves depositing the loan amount directly into the designated credit card or loan account, or sending a cashier&#x27;s check to the customer for them to repay their credit card balance or debt on their own. However, some banks now offer debt consolidation loans combining repayment and cash-out loans, allowing customers to have additional funds for cash flow while repaying their debts.</li><li data-block-key="9swkn">Personal instalment Loan: A loan for personal use, which can be used for various purposes, such as home renovation, travel, or education. The loan amount is usually determined based on the borrower&#x27;s creditworthiness, and the loan is disbursed in a lump sum to the borrower&#x27;s designated bank account.</li></ul>Who should consider applying for a balance transfer?If you find yourself struggling to make more than just the minimum payment on your credit card each month, or even resorting to using another credit card to pay off the outstanding balance and getting caught in a never-ending cycle of credit card debt, along with overdue repayments on other debts, a balance transfer can be a helpful solution to get through tough times. Moreover, if you have been borrowing excessively and defaulting on repayments, resulting in a lower credit rating, it may be challenging to qualify for low-interest personal loans to pay off your credit card debts. In such situations, a debt consolidation loan can be the ideal choice for consolidating your debts.Traditional banks vs Digital banksBoth traditional banks and digital banks offer debt consolidation loans, but the biggest difference lies in the fact that applying with digital banks is simpler and can be done entirely online through their app, 24/7. This greatly reduces the embarrassment of borrowing due to a large number of credit card debts and allows for quick debt consolidation anytime, anywhere.Other debt consolidation suggestionsWhile debt consolidation loans can be one effective method for resolving credit card debt woes, there are other debt consolidation options available if your debt level doesn&#x27;t qualify for a debt consolidation loan. Here are some suggestions for clearing your credit card debts:<ul><li data-block-key="9431u">Increase income and reduce expenses: Increasing income and reducing expenses can effectively ease the burden of debt repayment and avoid adding new credit card debts, helping to shorten the repayment period.</li><li data-block-key="v2ik6">Reduce credit limit: Reducing unnecessary expenses by lowering your credit limit can help curb excessive spending and strengthen consumption control.</li><li data-block-key="tyw5y">Credit card instalment plan: Applying for a monthly statement instalment plan allows for repayment over a period of up to 36 months, reducing the pressure of lump-sum debt repayment. Although there may be handling fees involved, it is still more cost-effective compared to paying only the minimum payment.</li><li data-block-key="p28ss">Tax loans: Many banks or financial institutions offer low-interest tax loans during the tax season (October to April of the following year). The annual interest rate is generally lower than regular loans. If your debt repayment coincides with the tax season, you may consider using this type of loan to help pay off your credit card debts.</li></ul>If you are still struggling with credit card debts and don&#x27;t know which debt consolidation loan plan is suitable for you, WeLab Bank&#x27;s exclusive Loan Masters1 provides you with suitable debt consolidation loan plans, along with the Debt Consolidation Loan to help you pay off your credit card debts in one go. For more information, visit:<a href="https://www.welab.bank/en/feature/debtcon_loan/"> https://www.welab.bank/en/feature/debtcon_loan/</a>To borrow or not to borrow? Borrow only if you can repay!1Loan Masters refer to WeLab Bank’s self-developed approval system that works in tandem with the team that follows up with the customers, to provide professional advice to customers based on their unique loan requirements and financial situations.

Balance transfer, also known as a debt consolidation loan, helps customers consolidate credit card balances, bank loans, or loans from financial companies and clear all debt in one go.

Combating The Credit Card Debt Cycle: Balance Transfer │ WeLab Bank

Quick test: Do you know what VB stands for? If you‘re one of those tech savvies, you probably know that VB refers to digital banks. However, digital banking has only been introduced in Hong Kong for around four years, so the operating model is still relatively new. Some people may have come across many digital banking offers, but may not fully understand how digital banking works. So, how effective is it really? What makes digital banking offers so attractive? And what are some common digital banking offers? Read along for a comprehensive understanding of the service advantages, as well as some popular digital banking offers!Definition of Digital BankingAccording to the Hong Kong Monetary Authority (HKMA), &quot;Digital Banks&quot; are different from other traditional bank online services and do not have any physical branches. They mainly provide banking services through digital channels, and all services can be processed through mobile applications or websites. So far, there are a total of eight digital banks regulated by the HKMA in Hong Kong, and WeLab Bank is one of them. Not only has it received support from many international investors, but it was also named the most innovative bank in 20221!4 Advantages of Digital Banks<ol><li data-block-key="irnev">Time-saving and Convenient Account Opening: The major selling point of digital banks is to offer a wide range of digital banking services and enable customers to open their accounts remotely. Using just a mobile app, you can complete all the application steps, such as scanning your ID and uploading a selfie, and avoid long waiting times. With this flexibility, you can open an account anytime.</li><li data-block-key="9udnp">Lower Account Thresholds and Transparent Fees: Traditional banks may require minimum assets or account balances and even charge low-balance service fees, depending on customer types. Digital banks, on the other hand, are committed to promoting inclusive financing. Regardless of your deposit amount, you can enjoy a high-quality financial experience and digital banking offers that are almost endless.</li><li data-block-key="2ayy1">Flexibility and Availability 24/7: Although traditional bank services, such as setting up fixed deposits or applying for loans, can be conducted online, they are still subject to business hours. Digital banks, on the other hand, break through time and geographical restrictions. With just a few taps on the mobile app, you can check out various digital banking offers anytime, anywhere and experience innovative banking services.</li><li data-block-key="cq89n">Rich and Attractive Digital Banking Offers: With lower operating costs than traditional banks, digital banks offer more competitive digital banking offers. WeLab Bank, for example, frequently offers cash rebates that cover account opening, spending, loans, and investments. Other recent highlights include the high-interest GoSave fixed deposit promotion &quot;GoSave Festival&quot;2 and co-branded benefits with companies from various industries. In recent years, WeLab Bank has teamed up with Tesla to offer Tesla’s exclusive customers 0% installment car loans3, regardless of whether they are new or existing customers, and to provide various other benefits.</li></ol>Summary of Digital Banking OffersTo attract customers to open accounts, digital banks are constantly introducing new digital banking offers. Take WeLab Bank as an example - you can enjoy the following promotions by opening an account in as little as 5 minutes4:<ol><li data-block-key="ekbkh">Personal Loans: Whether it&#x27;s installment loans or Debt consolidation loan, WeLab Bank provides tailored solutions with a dedicated Loan Master 5 to help you earn rich cashback rewards8. As a strategic partner of Tesla, WeLab Bank also offers low-interest unsecured loans for buying cars and cash rebate promotions on charging6.</li><li data-block-key="h7a5v">GoSave Fixed Deposits: In addition to saving money with different terms and rates, WeLab Bank also offers shockingly high-interest rates from time to time, with the latest offer providing a double-digit annual interest rate2.</li><li data-block-key="9xi8s">GoWealth Digital Wealth Advisory: No lock up period and no redemption fee. All fees are transparent with entry investment starting as low as HKD100, together with welcome offers from time to time.</li></ol>WeLab Bank Product FeaturesIn addition to various digital banking offers, WeLab Bank has also developed a range of financial products to cater to different customer needs. Here is a handy guide for you to better understand our products:<hr/>Personal Loans and Loan Masters6:WeLab Bank becomes your Loan Masters5  with a professional team utilizing a powerful intelligent system. Through data analysis and personalized algorithms, WeLab Bank provides a basic plan as well as two more flexible loan options. Applying for a loan takes as little as 3 steps, and you can receive funds within one day of approval7. Plus, successful applicants can receive an enticing cash rebate8!GoSave 2.0 Time Deposit:With a low entry threshold of just HKD10, you can easily start saving and achieve your savings goals on time. WeLab Bank also regularly launches the &quot;GoSave Festival&quot; with highly attractive interest rates2 that are more competitive than other digital banking offers in the market!GoWealth Digital Wealth Advisory:To promote financial inclusion, WebLab Bank incorporates professional investment asset management from AllianzGI into its financial technology, enabling everyone to access financial advice easily. With just a smartphone, you can receive financial planning, investment portfolio recommendations, fund trading, and ongoing tracking of your financial goals within WeLab Bank app. Let us guide you towards financial independence and turn your dreams into reality9!<hr/>Want to learn more about WeLab Bank&#x27;s various rewards and how they differ from other digital banking offers? Click here to see more details:<a href="https://www.welab.bank/en"> https://www.welab.bank/en</a>To borrow or not to borrow? Borrow only if you can repay!Note: This article is for information only and does not constitute any investment advice. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposits and not protected by Deposit Protection Scheme.1The claim is based on the result of the inaugural ‘Hong Kong Corporate Innovation Index’ 2022 held by the Asia-Pacific Institute of Business (APIB) of CUHK Business School.2See GoSave 2.0 Time Deposit Terms and Conditions for details.3The annualized percentage rate (“APR”) of the Loan is fixed at 0%. Assuming the loan amount is HKD400,000 with a tenor of 36 months, the APR will be 0.00%. The APR is calculated according to the guidelines issued in respect of the Code of Banking Practice and rounded to the nearest 2 decimal places and may vary for individual customers. Customers should refer to their loan confirmation letters for the relevant information and such information shall prevail. The APR is only applicable to designated loan amounts and for reference only. The final approved interest rate will be subject to customer’s credit assessment and the Bank’s approval. Terms and conditions apply, please refer to our official website for details.4Actual time may vary depending on factors such as your environment, connectivity and mobile phone.5Loan Masters refer to WeLab Bank’s self-developed approval system that works in tandem with the team that follows up with the customers, to provide professional advice to customers based on their unique loan requirements and financial situations.6From now until 30 April 2023, new customers who have successfully opened a bank account at WeLab bank or successfully applied for WeLab Bank Personal Loan with Referral code/ promotion codes starting with prefix ’TESLA5’ or  ’TE’ will be entitled to a 20% cash rebate using your WeLab Debit Card for eligible transactions conducted from the date of successful account opening or the date of successful loan drawdown until the following 5th calendar month. Monthly capped at HKD100. The promotion is subject to a quota and is available on a first-come, first-served basis. Please visit Terms and Conditions for more details.7The estimated period is calculated from the day the loan agreement is signed. The actual approval period and the actual time the loan is disbursed may vary upon information provided by the applicants.8From now on until 30 June 2023, successful WeLab Bank Debt Consolidation Loan applicants with an approved loan of minimum of HKD 1,000,000 amount and tenor of 36 months can enjoy up to HKD 13,888 cash rebate if the loan is drawn down within 7 days after approval; Successful WeLab Bank Personal Instalment Loan applicants with an approved loan of minimum of HKD 80,000 amount and tenor of 24 months can enjoy up to HKD 3,000 cash rebate if the loan is drawn down within 7 days after approval. The cash rebate amount will be credited into the Core Account on or before 31 October 2023. Please refer to terms and conditions for more details.9You may set up your investment goal via our Wealth Management Services on the WeLab Bank app, including the relevant investment horizon and one-time investment and monthly investment amounts. Our algorithm will recommend you a model portfolio based on your investment goal as well as your relevant personal circumstances. If you accept the recommendation, we will follow your instruction to process your one-time investment, and invest the monthly investment amount set by you in the model portfolio each month automatically. We will provide you various types of alerts/notifications, including but not limited to alerts/notifications about the status of your investment goal. However, such alerts/notifications are not investment advice. You may view the status of your investment goal and edit your investment goal on the WeLab Bank app according to your needs. The services are not discretionary asset management services. Any recommendation provided under the services is not a guarantee that you will achieve your investment goal.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from an independent financial adviser if needed.WeLab Bank is an authorized institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

What makes digital banking offers so attractive? What are some common digital banking offers? Read to understand the service advantages and some popular offers!

Discover the Advantages of Digital Banking: A Closer Look at WeLab Bank

Dollar cost averaging is a technique designed to reduce market risk through regular investments at predetermined intervals and set amounts over time. By buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price, investors can purchase more shares when prices are low and fewer shares when prices are high. Consequently, the impact of short-term market fluctuations on an investment can be mitigated and the costs of units purchased are averaged out.This chart shows that if you invest HKD2,000 per month for 10 years, you buy more units when the price is low and fewer units when the price is high.Hypothetical Example<p class="image-container text-center" data-img-alt="GoWealth_MarketBuzz(Chart)2_EN.jpg" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/GoWealth_MarketBuzzChart2_EN.width-500.jpg" element-type="image"><img alt="GoWealth_MarketBuzz(Chart)2_EN.jpg" src="/media/images/GoWealth_MarketBuzzChart2_EN.width-500.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><p class="image-container text-center" data-img-alt="GoWealth_MarketBuzz(Chart)3_EN.jpg" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/GoWealth_MarketBuzzChart3_EN.width-500.jpg" element-type="image"><img alt="GoWealth_MarketBuzz(Chart)3_EN.jpg" src="/media/images/GoWealth_MarketBuzzChart3_EN.width-500.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>According to the table, at the end of the period, the value of the total number of units bought is HKD520,965. This represents an annual rate of return of 8%, which amounts to returns almost 48% higher over the full 10 years when compared with a lump sum investment at the start of the period. The above information used is for illustrative purposes only and are not indicative of any fund performance and the actual returns likely to be achieved by the investor.Source: Allianz Global InvestorsImportant NoticeThis document is for general information only.  The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services.  This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document.  WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results.  WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document.  Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).  WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: https://hk.allianzgi.com/ .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AllianzGI Academy

AllianzGI Academy: Dollar Cost Averaging

Mutual FundsMutual funds, or unit trusts, are a pool of money from a number of investors. You are essentially able to buy a small stake in the mutual fund&#x27;s underlying assets. By investing as a group with other investors, you may access a larger and more diversified pool of assets than you would as an individual.Because the various expenses of investing (such as brokerage commissions, custodian&#x27;s fees etc.) are spread over a larger pool of assets and effectively shared with all the other investors, mutual funds may provide you with a cost effective investment solution.Another key benefit of mutual funds is that it is professionally managed. You have access to the same expertise as a large institutional investor. Your minimum investable money need only be a few thousand dollars, or even less.Equity FundsThese focus mainly or exclusively on stock market investments, looking to achieve capital appreciation over the long term. Most equity funds seek to achieve defined capital growth objective in particular ways. Some focus on one particular stock market – such as Hong Kong. Others will invest in stock markets throughout a particular region of the world – such as the Asia Pacific – or worldwide.Sometimes equity funds will be defined by the sort of companies that they invest in, rather than the part of the world that they are focusing on. Growth stocks, for instance, are investments in companies whose businesses and earnings are likely to expand at a relatively rapid rate. Value stocks, by contrast, are investments in companies that may pay attractive potential dividends and in turn appear to be cheap in terms of the valuations.Bond FundsBond funds tend to focus mainly on fixed income investments, looking for long term capital appreciation and income. Many bond funds can and do provide some capital growth, and they are normally less risky than equity funds.Bond funds are usually defined by the part of the world in which they invest, or the type of bonds in which they invest in. For instance, they may focus on government bonds. Alternatively, they may invest in corporate bonds, which are issued by large companies.Most bonds are assessed for riskiness by major ratings agencies such as Standard &amp; Poor’s or Moody&#x27;s. Some bonds are seen by the agencies as being sufficiently risky that they are &quot;below investment grade&quot;. Such bonds usually include high yield bonds and emerging markets debt.Multi-asset FundsMulti-asset funds combine a stock component, a bond component and, sometimes, a money market component, in a single portfolio. They look for a mixture of potential income and modest capital appreciation.Cash or Liquidity FundsCash or liquidity funds are the least volatile of mutual funds. They invest in bank deposits and, sometimes, short-term bonds of very high quality. They usually carry no risk of capital losses, but offer no prospect of capital gain. Returns to investors come entirely from interest income.Cash or liquidity funds are often attractive to investors who are very risk averse. Whilst they can also be useful as a place to park spare cash for a short period, it is not same as placing monies on deposit with a bank or deposit-taking company.DiversificationInvesting in funds provide you with the ability to build an enormous variety of portfolios. It is possible to spread your investments across stocks, bonds or cash or liquidity – or across a number of countries/locations, industries and sectors.This diversification may reduce risk level, reduce volatility and increase the likelihood that your investments may produce a steady potential return over time.By using mutual funds, you can build an investment portfolio that matches your investment objectives, risk tolerance and personal financial situation.Fund Structure<p class="image-container text-center" data-img-alt="GoWealth_MarketBuzz(Chart)1_EN.jpg" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/GoWealth_MarketBuzzChart1_EN.width-500.jpg" element-type="image"><img alt="GoWealth_MarketBuzz(Chart)1_EN.jpg" src="/media/images/GoWealth_MarketBuzzChart1_EN.width-500.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>* It may vary from fund to fund. Source: Allianz Global InvestorsImportant NoticeThis document is for general information only.  The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services.  This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document.  WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results.  WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document.  Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).  WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: https://hk.allianzgi.com/ .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AllianzGI Academy: Fund Investment Basics

A guide on fixed incomeFor investors who would like to earn regular fixed income, apart from bank deposits, they may also consider bonds or bond funds. Buying a bond is like lending money to the bond issuer. As a return, the issuer will pay the bondholder a specific rate of interest, also known as coupon, at periodic intervals throughout the life of the bond, and repay the principal when the bond matures.If an investor purchases a bond at its face value and holds it to maturity, the return is equal to the fixed income received.Let’s take an example of a 3-year bond purchased at US$1,000 face value, with a 4% annual coupon. The interest payment each year for the first two years will be US$40. When the bond matures in the third year, the interest and principal will be US$1,040. Therefore, the annual total return is 4%.However, if the investor does not hold the bond to maturity, the prevailing market interest rate should be factored in when calculating the investment return. Since bond prices are inversely related to interest rate movements, a rise in interest rates could see a fall in bond prices, and vice versa. In the worst case scenario, the loss in value of the bond may be greater than the fixed income received, which means the investor will suffer a loss.Fixed income investment returns For dividend-paying funds, investors should take into account not only the funds&#x27; net asset value (also known as NAV) but also the dividends paid. Dividends can be paid annually or monthly. The gain or loss in NAV, together with the dividends paid, should be factored in when calculating the total return.For instance, in the case of bonds, the total return cannot be determined solely based on the change in bond prices. Interest payments should also be taken into account when calculating total return. We must take note that for both bond funds and bonds, a portion of the total return comes from these fixed payments paid. Therefore, we cannot just focus on the change in NAV of the fund or bond prices. This is especially important for bond funds that pay high income distributions.Taking the US High Yield Index as a hypothetical example, if an investor invested USD10,000 at the beginning of 2006, his/her investment would have grown to approximately USD19,000 after 10 years. Out of which, fixed income received contributed about 55% of the investment value1. So don’t just focus on the change in NAV, it is also important to look at the contribution of regular income distributions, or dividends, to the total return. 1 Source: BofA Merrill Lynch, as at 31 December 2015. Monthly data from January 2006 to December 2015 Source: Allianz Global InvestorsImportant NoticeThis document is for general information only.  The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services.  This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document.  WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results.  WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document.  Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).  WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: https://hk.allianzgi.com/ .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AllianzGI Academy: Income 101

We understand that the recent chain reaction of US and European banks has caused concerns among investors. However, this is exactly the reason why our Bank has designed GoWealth: We hope to help investor to capture opportunities despite volatile market conditions by investing in portfolios with ability to diversification of risks1. And from the recent performance in March, you will be able to see how GoWealth can help you diversify risks1.Real Life Test on GoWealth ResilienceFrom the actual return you will see that the banking sector has taken a big hit from the headlines in March. Despite being considered a more conservative investment, in less than 1 month, the US Dow Jones Banking Index has fallen close to 20%.On the other hand, GoWealth portfolios have clearly stayed away from the impact. The average performance of the GoWealth’s equity portoflios and the mixed asset portfolios have just fallen 0.2% to 0.5%, and the bond portfolios have even risen 0.9% in average.From this comparison, you will see how the diversity of GoWealth’s portfolios demonstrate the risk diversification in real life1.<a href="https://www.welab.bank/en/feature/wealth">Learn more about GoWealth</a>Return Comparison from 1 to 26 March 2023<p class="image-container " data-img-alt="GoWealth_StayCalm(chart)EN.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_StayCalmchartEN.width-800.jpg" element-type="image"><img alt="GoWealth_StayCalm(chart)EN.jpg" src="/media/images/GoWealth_StayCalmchartEN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>* Past performance is not indicative of future results. The above information is for illustrative purposes only.Average performance of GoWealth Bond Portfolios, GoWealth Mixed Asset Portfolios and GoWealth Equity Portfolios are calculated based on the average return of the respective asset class portfolios in GoWealth, and the return of a portfolio is calculated based on the NAV-to-NAV of the relevant constituent funds in US dollar by composition ratio from 1 March to 26 March 2023Dow Jones US Bank Index return is calculated based on the NAV-to-NAV in US dollar from 1 March to 26 March 2023Dynamic underlying holding in constituent funds increases resilienceGoWealth’s portfolios consist of funds managed by asset management firms with larger scale. Most of the funds do not have any exposure to Silicon Valley Bank, Signature Bank, and Republic Bank. Even for funds with such exposure, it is only less than 0.5% of the funds’ AUM.In order to achieve long term return, the most importance element is to diversify risk and increase the resilience of your portfolio during stressed market. This will help you to capture potential return in a volatile market1. On the flipside, short term trading may result in “Buy High, Sell Low”, resulting in higher loss.We understand market fluctuation may worry you, but we still want to remind you GoWealth’s portfolios are composed of funds, which are investment tool for longer investment term. When judging the performance of the GoWealth’s portfolio, you are advised not to only focus on short-term market fluctuations. Please keep claim when making any investment decision.<a href="https://www.welab.bank/en/feature/wealth">Know more about GoWealth Digital Wealth Advisory</a>Recap on what happened in the US and European BanksWith the aggressive rate hike from the US Fed, the bond price has taken a big hit since last year. Additionally, the borrowing cost has risen, resulting in a lower liquidity in the financial market. Several companies start to withdraw deposits from banks. Hence a few of the banks such as Silicon Valley Bank, Signature Bank, Republic Bank has suffered from the loss in their bond investment, at the same time facing issues with deposit shortage. Market began to panic further once the news came out, causing banking related stock to fall in March.1 Diversification does not guarantee a profit or eliminate the risks involved in the investments. Past performance is not indicative of future results. We make no representation or warranty regarding future performance..Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Testing GoWealth’s resilience in real life! | 5-min read

As recent news headline has quoted, the saving rate among banks have started to fall. Many customers are now looking for returns which are higher than time deposit but at the same time relatively stable.Read more to learn how to achieve relatively stable return with manageable risks!Invest into assets with low correlation to achieve auto risk diversificationInvestment is different from time deposit. In general, the risks associated with time deposit are generally lower than that of investment since time deposit is principle guaranteed and its return is determined by the deposit interest rate; and for investment, you get the return through the increase of value of the invested assets. Investment return may be higher than that of time deposit, but the price of invested assets can rise and fall, so the return, as well as the principle, is not guaranteed.Risk diversification is one of the ways to manage the risks associated with investment, and also a common term to many, but not many know how to properly achieve it.The key to diversification is to invest into asset with low correlation, e.g. stock and bond, while avoid going “all-in” into a single stock.As shown by data, referencing the current 5 largest market cap Hong Kong stocks, we can easily see that investing into a global mixed asset portfolio has a much lower volatility1.<p class="image-container " data-img-alt="GoWealth_Insight_March_TD_EN Graph.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_Insight_March_TD_EN_Graph.width-800.jpg" element-type="image"><img alt="GoWealth_Insight_March_TD_EN Graph.jpg" src="/media/images/GoWealth_Insight_March_TD_EN_Graph.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>Performance information of global mixed asset portfolio is based on the NAV-to-NAV of the following relevant benchmark index in US dollar from 2008 to 2022 according to the following proportion: Composition of index are: 30% Global Equity MSCI ACWI NR USD; 60% Global Bond Bloomberg Gbl Agg Corp TR USD; 10% Asia Bond JPM GBI Asia Pacific Div 1-10Y TR USDPerformance information of 5 Hong Kong stocks with largest current market capitalisation (Alibaba, China Mobile, HSBC Holdings, CCB and Tencent Holdings) are based on the NAV-to-NAV in US dollar from 2008 to 2022.Past performance is not indicative of future results. The above information is for illustrative purposes only.Bank saving rate is starting to fall from the peak we see last year. Many investors are very clear that its impossible to just rely on time deposit to fight against inflation. Invest in global multi asset portfolio will auto invest your return. In the long run, outperform the return of TD and inflation1.How can GoWealth help?Leveraging on AllianzGI’s data base2, the portfolio recommendation prepared by GoWealth, has already considered the correlation between asset classes. The key objective is to assist you in capturing market opportunities automatically in different markets!GoWealth, One-stop Fund Investment Advisory SolutionCapitalising on the power of technology and the investment expertise of AllianzGI, GoWealth offers our customers professional wealth advice in the most seamless way. From financial planning and investment portfolio recommendations, to fund transactions and financial goal tracking, all you need is WeLab Bank app, and it will bring you to your goals on autopilot3!<a href="https://www.welab.bank/en/feature/wealth">How to use GoWealth Digital Wealth Advisory?</a><a href="https://www.welab.bank/en/feature/fund/">Additional: New Featured Funds</a>Note: This article is for information only and does not constitute any investment advice. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposit and not protected by Deposit Protection Scheme.1Diversification does not guarantee a profit or eliminate the risks involved in the investments. Past performance is not indicative of future results. We makes no representation or warranty regarding future performance.2The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations.3You may set up your investment goal via our Wealth Management Services on the WeLab Bank app, including the relevant investment horizon and one-time investment and monthly investment amounts. Our algorithm will recommend you a model portfolio based on your investment goal as well as your relevant personal circumstances. If you accept the recommendation, we will follow your instruction to process your one-time investment, and invest the monthly investment amount set by you in the model portfolio each month automatically. We will provide you various types of alerts/notifications, including but not limited to alerts/notifications about the status of your investment goal. However, such alerts/notifications are not investment advice. You may view the status of your investment goal and edit your investment goal on the WeLab Bank app according to your needs. The services are not discretionary asset management services. Any recommendation provided under the services is not a guarantee that you will achieve your investment goal.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Where to find investment with stable return? | 3-min read

After the bull market in January 2023 📈, the market seems to have lost its momentum over February. 📉With the hype around AI Chatbot, we challenged the chatbot on giving us wealth insight for today’s market! 💭<p class="image-container text-center" data-img-alt="GoWealth_Insight-March(Screen)EN.png" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/GoWealth_Insight-MarchScreenEN.width-500.png" element-type="image"><img alt="GoWealth_Insight-March(Screen)EN.png" src="/media/images/GoWealth_Insight-MarchScreenEN.width-500.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/>Note: This is not an investment advice and is for reference only.After the test, 🤖 AI Chatbot summarises well on what a good wealth management is about. E.g. Diversification, long-term investing, and avoid emotional investing, which coincidentally matched with GoWealth!But in contrast, 🚀 GoWealth’s algorithm has incorporated with a forward-looking projections, enabling GoWealth to produce detailed simulations and analysis for the next 50 years1.GoWealth, One-stop Fund Investment Advisory SolutionCapitalising on the power of technology and the investment expertise of AllianzGI, GoWealth offers our customers professional wealth advice in the most seamless way. From financial planning and investment portfolio recommendations, to fund transactions and financial goal tracking, all you need is WeLab Bank app, and it will bring you to your goals on autopilot2!<img alt="eDM_footer(ETW)EN.jpg" src="/media/images/eDM_footerETWEN.width-500.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><a href="https://www.welab.bank/en/feature/casagowealthoffer/">Click here to Learn More</a>1The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations.2You may set up your investment goal via our Wealth Management Services on the WeLab Bank app, including the relevant investment horizon and one-time investment and monthly investment amounts. Our algorithm will recommend you a model portfolio based on your investment goal as well as your relevant personal circumstances. If you accept the recommendation, we will follow your instruction to process your one-time investment, and invest the monthly investment amount set by you in the model portfolio each month automatically. We will provide you various types of alerts/notifications, including but not limited to alerts/notifications about the status of your investment goal. However, such alerts/notifications are not investment advice. You may view the status of your investment goal and edit your investment goal on the WeLab Bank app according to your needs. The services are not discretionary asset management services. Any recommendation provided under the services is not a guarantee that you will achieve your investment goal.Note: The GoWealth Auto Upgrade Offer is not applicable to any loan customers in WeLab Bank.* From now until 31 March 2023, if you have successfully opened an Investment Account, for the first 180 days from the date of account opening, you will receive a monthly cash rebate, amount of which shall be equal to Eligible Deposit X Cash Rebate Rate. If you have successfully placed mutual fund(s) subscription order(s) with an one-time investment and/or monthly investment with accumulated amount of not less than HKD 20,000 (or equivalent) with your investment account on or before 31 March 2023, you can even enjoy an additional monthly cash rebate for the first 180 days from the date of account opening, amount of which shall be equal to Eligible Deposit X Bonus Cash Rebate Rate. Please note that: (a) Eligible Deposit refers to the HKD fund placed in your Core Account capped at HKD100,000. (b) Cash Rebate Rate shall be equal to 2.80% minus the current prevailing interest rate applicable to your Core Account, (c) Bonus Cash Rebate Rate shall be 1.00%. This program is not applicable to any loan customers of WeLab Bank. Terms and conditions apply. For more details, please visit https://www.welab.bank/en/legal/casagowealth_offer_tnc/^From now until 31 March 2023, if you are an existing customer of our Wealth Management Services and have successfully placed mutual fund(s) subscription order with an one-time investment and/or monthly investment order(s) with accumulated amount of not less than HKD 20,000 (or equivalent), for the first 180 days from the first successful order placement date, you will receive a monthly cash rebate, amount of which shall be equal to Eligible Deposit X Cash Rebate Rate, in which: (a) Eligible Deposit refers to the HKD fund placed in your Core Account capped at HKD100,000, (b) Cash Rebate Rate shall be equal to 3.80% minus the current prevailing interest rate applicable to your Core Account. Note: This program is not applicable to any loan customers in WeLab Bank. Terms and conditions apply. For more details, please visit https://www.welab.bank/en/legal/casagowealth_offer_tnc/Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

AI took a test on wealth advice! | 1-min read

The &quot;January Effect&quot; has been a well-known hypothesis in the investment world. The idea behind is straight forward, statistically speaking, the full year stock market performance is more likely to end on a rise when we see a positive return in January, and vice versa. Some says this is because traditionally, January is the time when fund manager reset their investment strategy for the year, hence to a certain extent, the money flow of January does have its reference value.As for 2023, January has gone by in a blink, and we’ve seen a strong performance from both the global stock market and the Hong Kong stock market, which have risen 7% and 9% respectively.Having said that, the January effect is only one of the many reference data. Investors should always have a forward-looking view to the market. Back by top fund houses, GoWealth Digital Wealth Advisory can offer you a holistic market analysis. We have summarized 3 main factors these top fund houses are looking at for you below:<ul><li>Inflation Expectations</li></ul>PIMCO: Even with the range of scenarios, uncertainty over the outlook for the Fed should be much lower in 2023. This led us to focus on the concentric circles investment framework. If the Fed and other central banks can convince investors that the center will hold, then assets at the center should perform well. And – sequentially – this should feed into improved returns at the higher risk asset. But in the event there is a loss of confidence on inflation, and central banks are forced to raise rates more than expected, this will have negative consequences for the higher risk assets.<ul><li>Signal for Recession</li></ul>Blackrock: Central banks are deliberately causing recession by overtightening policy to tame inflation, in our view. That makes recession foretold. What matters: our view on the pricing of economic damage and our assessment of market risk sentiment. Investment implication: We stay underweight DM equities but expect to turn more positive at some point in 2023.<ul><li>Covid Development in China</li></ul>Invesco: China&#x27;s equity market delivered positive return this month with the long-anticipated announcement of China’s full reopening of borders. We expect a surge in people mobility after the long-awaited reopening, where there will be a pent-up demand for travel and domestic demand. In Hong Kong, with close proximity and intimate economic relationships with China, it is expected to be one of the largest beneficiaries of China’s reopening, where we expect more trades across border and influx of visitors from mainland China to Hong Kong.How can GoWealth help you?Want to invest intelligently? Make sure you don’t only monitor January’s market performance. Backed by WeLab Bank’s fintech experience and AllianzGI’s investment management expertise, “GoWealth Digital Wealth Advisory Services”, provides projection of the market trends in the next 50 years1, to help you make well-informed and strategized investment decisions.Click Here for Full Article PIMCO: <a href="https://www.pimco.com.hk/zh-hk/insights/blog/cyclical-outlook-key-takeaways-strained-markets-strong-bonds">https://www.pimco.com.hk/zh-hk/insights/blog/cyclical-outlook-key-takeaways-strained-markets-strong-bonds</a> Blackrock: <a href="https://www.blackrock.com/hk/en/insights/global-investment-outlook?switchLocale=Y">https://www.blackrock.com/hk/en/insights/global-investment-outlook?switchLocale=Y</a> Invesco: <a href="https://apc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.invesco.com%2Fhk%2Fen%2Finvestment-ideas%2Fgms%2Fmarket-insight-global-monthly-outlook-january-2023.html&amp;data=05%7C01%7Cjonathan.tse%40welab.bank%7Cb20d1cbc9a9a438bc2e808db0271012f%7Caae9b0b7c92f4950947db3a8f70db233%7C0%7C0%7C638106456630203152%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bnNgD9NqLznQNRc73O9xJ5wlc1Ogf2G8FuULhX%2BiU4o%3D&amp;reserved=0">https://www.invesco.com/hk/en/investment-ideas/gms/market-insight-global-monthly-outlook-january-2023.html</a>Note: This document is for information only and does not constitute any investment advice. Past returns are not indicative of future performance. The above information is for illustrative purposes only. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposit and not protected by Deposit Protection Scheme.1The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations. Such information and simulations are assumptions only. They do not reflect or project actual investment performance of the model portfolio or performance of any constituent funds therein. The recommendation is not a guarantee that you will achieve your goal.Importance Notice This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How reliable is the “January Effect”? | 3-min read

Chinese New Year is coming in a few days, it’s time to get some Feng Shui decorations to boost your wealth, health and polarity and to eliminate the bad fortune in the Year of Tiger. In the investment world, while the Year of the “Gui Mao” ---“Water Rabbit” --- is approaching, there is hope in stock market to rise like a rabbit emerging from her burrow after the volatility in the Year of Tiger. In fact, Hang Seng Index (HSI) is off to a strong start, has gained 7%1 since the start of 2023.While there is no “Tung Shing” almanac for investment market, we can still find some profound up and down cycles if we look at the stock markets in the previous Rabbit years. For example, in the last Rabbit year in 2011, HSI slumped 15.89% amid global financial turmoil, the worst year since the financial crisis in 2008. On the other hand, HSI soared nearly 70% in another Year of the Rabbit in 1999 and brought tremendous returns for investors, led by tech stocks boom.Hong Kong Stock Market Performance* in the previous Rabbit years <p class="image-container " data-img-alt="GoWealth_YOR(Blog)Chart1_EN.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_YORBlogChart1_EN.width-800.jpg" element-type="image"><img alt="GoWealth_YOR(Blog)Chart1_EN.jpg" src="/media/images/GoWealth_YORBlogChart1_EN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/><p class="image-container " data-img-alt="GoWealth_YOR(Blog)Chart2_EN.jpg" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_YORBlogChart2_EN.width-800.jpg" element-type="image"><img alt="GoWealth_YOR(Blog)Chart2_EN.jpg" src="/media/images/GoWealth_YORBlogChart2_EN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>* Hong Kong Stock Market Performance with the designated period is the Hang Seng Index change within the period.  Source:, “Wall Street Journal”Past returns are not indicative of future performance. The above information is for illustrative purposes only.Investment Forecast in the Year of the Rabbit 2023The investment market sentiment in the Year of Tiger was dismal. However, stock market trends always have ups and downs with crest coming after trough, as depicted in the graph above. Understanding the principles behind will allow investors to objectively deploy capital. Looking to the coming Year of the Rabbit, as global commodity prices and inflation start to ease, alongside the easing of covid restrictions in China, Hong Kong and global stock markets could emerge from the trough, and get ready for a “Bunny Jump” rebound!<hr/>What is the view from AllianzGI, our fund partner?Prepare for the potential equity market turnaround: in the short term, we are approaching the point when bad news for the economy could become good news for equity markets as weakening economic activity will start to lean on inflation. This could bring a slower pace of rate increases – and eventually a peak in rates in 2023 – accompanied by recession.Amid volatility in 2023, investors could consider anchoring portfolios with low-volatility multi-factor strategies that offer a possible bedrock of stability on which to build. Second, explore quality value and growth opportunities as well as income. Finally, consider high-conviction thematics around key pillars such as national security (eg, food, energy, water, cyber security), climate resilience and innovation (eg, AI) and sustainability.Source: Allianz Global Investors<hr/>How can GoWealth help?While some may believe in the Feng Shui cycles, to a certain extent it is similar to the stock market where cycles can be found. As a long term investor, the key is to create an all-weather multi-asset portfolios. Backed by AllianzGI’s investment expertise, GoWealth’s portfolios cover a wide range of global asset, aiming at diversifying the customers’ investment more efficiently, reducing the impact to investment portfolio due to market volatility.Note: This document is for information only and does not constitute any investment advice. Past returns are not indicative of future performance. The above information is for illustrative purposes only. Diversification does not guarantee a profit or eliminate the risks involved in the investments. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposit and not protected by Deposit Protection Scheme.1CNBC: As at 11 January 2023Important NoticeThis document is for general information only.  The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services.  This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document.  WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results.  WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document.  Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s).  WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: https://hk.allianzgi.com/ .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

3分鐘閱讀 (2023年1月刊) | 「兔」氣揚眉迎新年？兔年股市走勢睇呢度！

Year of the Rabbit: Will there be a “Bunny Jump” in the stock market? | 3-min read

2022 has been a special year for investors: First, the Hang Seng Index fell over 10,000 points from the highest point (a drop of 40%!). Then in November, the Hang Seng Index achieved the highest single-month increase since October 1998. The key to success in a volatile market is to closely monitor the market. If you can’t do it yourself or have an investment advisor to help you, GoWealth is a very good choice for you.In only 6 months since launched, there have already been close to 100,000 userswho have tried3. GoWealth’s services. Want to know why the overwhelming trust and support for GoWealth? Let’s take a look at the performance of GoWealth&#x27;s portfolios in the last quarter!100% Positive returns for the portfolios in 2022 Q41<p class="image-container " data-img-alt="GoWealth_PerformanceReview(Blog)Chart1_english" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_PerformanceReviewBlogChart1_EN.width-800.jpg" element-type="image"><img alt="GoWealth_PerformanceReview(Blog)Chart1_english" src="/media/images/GoWealth_PerformanceReviewBlogChart1_EN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>Note: The figures above are the average returns of GoWealth&#x27;s model portfolios rated as low risk, low to medium risk and medium risk respectively, which are calculated based on the NAV-to-NAV of the constituent funds in the relevant model portfolios in US dollar from 1 October to 31 December 2022. Past performance is not indicative of future results. The above information is for illustrative purposes only.Despite facing a volatile market, through AllianzGI’s expertise in risk management and asset allocation, GoWealth Multi-asset portfolio is able to capture supreme return.<p class="image-container " data-img-alt="GoWealth_PerformanceReview(Blog)_performance_EN" data-img-format="fullwidth" data-img-max-width="0" data-img-src="/media/images/GoWealth_PerformanceReviewBlogChart2_EN.width-800.jpg" element-type="image"><img alt="GoWealth_PerformanceReview(Blog)_performance_EN" src="/media/images/GoWealth_PerformanceReviewBlogChart2_EN.width-800.jpg" style="width: auto; height: auto; max-width: max(100%, 0px)"/>Note:<ol><li>The investment return assumption show in “Medium Risk GoWealth Portfolio Average Return” is linked to the average NAVs of all the GoWealth’s model portfolios rated as Medium risk, which is calculated based on the HKD equivalent of the NAVs of the constituent funds in the relevant model portfolios. “Medium Risk GoWealth Portfolio Average Return” is only for the purpose of illustrating the average investment return of all the GoWealth’s model portfolios rated as Medium risk. You cannot directly invest in “Medium Risk GoWealth Portfolio”. The average return assumption does not include (i) any subscription fee incurred in the subscription of the portfolio and (ii) any foreign currency exchange costs and charges involved in the subscription and redemption of the portfolio.</li><li>The investment return assumption shown in the &quot;US Stock Index&quot; is linked to the performance of the U.S. S&amp;P 500 Total Return Index (USD). The investment return shown in the &quot;Global Bond Index”is linked to the performance of the Bloomberg Global Aggregate Index (Total Return) (USD)). You cannot invest directly in the above indices. The investment returm assumption excludes all fees and taxes, and any foreign currency conversion costs and charges.</li><li>Past returns are not indicative of future performance. The above assumptions are for illustrative purposes only.</li></ol>Why GoWealth?GoWealth&#x27;s intelligent investment engine integrates the power of financial technology and Allianz Global Investment’s management expertise, so that customers can invest in global investment portfolios at the fingertips. Investment has never been this intelligent and easy! Want to experience the powerful investment engine? Head to GoWealth page in the app now, and activate your investment account in just a few steps!Note: This is for information only and does not constitute any investment advice. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposit and not protected by Deposit Protection Scheme.1Based on the NAV-to-NAV of the constituent funds in the relevant GoWealth portfolios in US dollar from 1 October to 30 November 2022 and is for illustration purposes only. Past performance is not indicative of future results.2“Moderate Multi-Asset portfolio” is one of the GoWealth model portolios. “Outperformed the US Stocks” means the investment return of “Moderate Multi-Asset portfolio” from 1 October to 30 November 2022 calculated based on the NAV-to-NAV of its constituent funds in US dollars (11%) is higher than the increase of the U.S. S&amp;P 500 Total Return Index (USD) in the same period (8%). Information is for illustration purposes only. Past performance is not indicative of future results.3This is number of access to GoWealth page from WeLab Bank app counted since 30 June 2022 to 31 Dec 2022.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons.The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house.Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

GoWealth portfolios' recorded great performance in 2022 Q4; Moderate Multi-Asset portfolio outperformed the US stock(2)! | 3-min read

Time deposit has been a popular topic in HK recently. But is this the only ‘lazy’ way to manage your wealth? Of course not! Time deposit allows you to receive interest in a fixed period but if you are looking for long term growth, GoWealth maybe a better investment tool! With ultimate flexibility in your investment,GoWealth helps you invest into fund portfolios in just a few steps. Except great flexibility, GoWeatlh also helps you win with stability in volatile market condition.GoWealth’s portfolio has recorded up to 12%* high return in the 4th quarter this year!While it’s understandable that some investors are still hesitant to invest, as they might have experienced losses from stocks and bonds in 2022. But apart from the rebound in individual markets in the fourth quarter, many experts are optimistic that the market outlook and the potential opportunities for investors as the market begins to stabilize. Read on to learn about some key factors that Allianz Global Investors believes are worth noting for the market outlook in 2023:From Allianz Global Investors: Market overshoot may set the stage for a potential rebound in bonds and equitiesAllianz Global Investors remain rather cautiously positioned in their funds for now. But they expect to see potential opportunities to re-enter bond and equity markets in the course of 2023. Turning points to watch for:<ul><li>Notably bonds, but also equities, could stabilise and rebound once market expectations for rate rises overshoot the required adjustment. Typically, this happens towards the end of a tightening cycle.</li><li>Investor pessimism tends to reach its nadir during a recession. Then investors may start to climb “the wall of worry” – the point at which investors overcome their concerns about negative issues and push securities higher.</li><li>The current rising market volatility could be an ideal environment for active investors to identify opportunities within asset classes.</li></ul><a href="https://www.allianzglobalinvestors.de/MDBWS/doc/AllianzGI-Rates-2023Outlook-ENG-2022.pdf?28b9c83dad2c65c576b513585575b96433591a42">Click here</a> to read the full article.How can GoWealth help you?GoWealth’s intelligent investment engine leverages on the power of fintech and Allianz Global Investors&#x27; management expertise, so that you can invest in top global investment portfolios in a few clicks. Click into GoWealth to start a new investment goal!Note: This article is for information only and does not constitute any investment advice. Investment involves risks, please refer to the Important Notice herein for details. GoWealth Digital Advisory Services and fund investment are not deposit and not protected by Deposit Protection Scheme.*Performance information of the model portfolios available under GoWealth Digital Advisory Services is based on the NAV-to-NAV of the relevant constituent funds in US dollar from 1 October to 30 November 2022. Past performance is not indicative of future results.Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Potential rebound in 2023, what should investor look out for? | 3-min read

The world&#x27;s greatest football tournament🏆 is around the corner! Like no other precedents, it’s the first time the tournament being held mid-season. With teams catching up by having a match every 3 or 4 days, and having limited time to rest between matches, many teams had to push themselves to the limits and even play with injuries.To win smart in a match, it takes more than just techniques - a versatile strategy is indispensable. Facing unprecedented challenges, the world of investment also needs a versatile strategy to adapt to the ever-changing market.Looking for a strategist to help you in investment? GoWealth digital wealth advisor has your back. Read on to learn the 3 strategies GoWealth has in store for you:Strategy 1: Intelligent engine for flexible investmentTogether with Allianz Global Investors, we have co-devloped a sophisticated system that powers GoWealth’s investment engine1, to help to provide detailed market analysis. With our smart alerts2 that keep you in the know of the latest market fluctuations, you can also adjust your investment goals and strive towards your goals anytime📈- all in WeLab Bank app.Strategy 2: Invest with the ultimate peace of mind with our strong investment capabilityBacked by top global fund houses - BlackRock, Invesco, Janus Henderson and PIMCO and more, GoWealth makes sure your portfolio is in the right hands. The fund managers are all from top global asset management firms with global investment expertise, risk management capability, and know-how in sustainable investing (ESG) to help you capture market opportunities.Strategy 3: Reduce your risk with GoWealth’s diversified portfolioThrough technology, GoWealth leverages on a solution, which was mostly used by institutional investors, to provide a list of portfolios with optimized asset allocation aiming at diversifying the customers’ investment more efficiently, reducing the impact to investment portfolio due to market volatility3.Disclaimer:1The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations. Such information and simulations are assumptions only. They do not reflect or project actual investment performance of the model portfolio or performance of any constituent funds therein. The recommendation is not a guarantee that you will achieve your goal. 2We will provide you various types of alerts/notifications, including but not limited to alerts/notifications about the status of your investment goal. However, such alerts/notifications are not investment advice. 3Diversification does not guarantee a profit or eliminate the risks involved in the investments.Important NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Up your investment game with GoWealth | 3-min read

Everyone wants to invest at the best timing, but is there such a thing at all? Let’s first analyze the global market this year, before we dive into how GoWealth can help you stay well-invested in the long term, even in a volatile market.The global market situation in 2022The global market has been very volatile in 2022. In addition to the substantial adjustments in the stock, bond and foreign exchange markets, the Hang Seng Technology Index has dropped by nearly 70% from its peak last year, and the Nasdaq Index has also dropped by over 30% from its peak last year. Many investors wanted to take the opportunity to invest in a flat market, but at the same time worried that the fluctuating market would crumble again.The best investment timing?In fact, no one can accurately predict the market, so we should always revisit the most basic concept of investment – it&#x27;s a long-term thing. Simply by taking advantage of the average cost method, you can enter the market in different timings, by investing just a little each month, to reduce the risk of market timing. Eventually, the market will always recover slowly after going through a cycle. Therefore, instead of betting on everything with the mentality of &quot;making quick bucks&quot;, it is better to diversify risk investment and earn long-term returns.How can GoWealth help you?1. Effective risk management with diversified investment portfoliosThrough technology, GoWealth leverages on a solution, which was mostly used by institutional investors, to provide a list of portfolios with optimized asset allocation aiming at diversifying the customers’ investment more efficiently, reducing the impact to investment portfolio due to market volatility.2. All-round portfolio to capture market opportunitiesGoWealth’s investment portfolio covers actively managed mutual funds diversified across asset classes. The fund managers are all from top global asset management firms with global investment expertise, risk management capability, and know-how in sustainable investing (ESG). The solution strives to assist customers in capturing market opportunities.3. Minimize market timing risk with average cost methodTo reduce market timing risks, you can use GoWealth to set up a monthly investment plan at a few clicks. Then, you can automatically invest every month, and enjoy the advantage of the average cost method to reduce market timing risks and enjoy long-term returns.Important NoticeInvestment involves risks. Diversification and “average cost method” provide no guarantee to your investment return and do not eliminate the risks involved in investment. This document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Investment 101: Volatile market? GoWealth’s here to help!

Investment 101: Volatile market? GoWealth’s here to help! | 3-min read

The performance of Hong Kong stocks has been unsatisfactory this year with the benchmark Hang Seng Index plunged 17% since the second quarter, landing below 19000 points. While some think it’s the time to buy the market bottom, some afraid the stock market will continue to fall. Investors are generally prone to irrational behaviour due to their human instincts and tend to buy while investor sentiment is strong and anxious when the market falls. Many ends up buy high and sell low and lost money.Bruno Lee1, who has extensive experience in the region’s financial market, has once said: “The world is unpredictable. Who would have thought of Covid-19 to sweep across the world since 2019? But no matter how shocking these events could be, there must be an end out of it, and you won’t see all companies going bankruptcies. People generally stay away from risks when the market performs extremely, but my decade-long experience in the financial market has taught me to invest gradually for future decent returns.”Indeed, assuming an investor has invested on a monthly basis, he would have accumulated impressive returns over the last decade. The most important thing is that investors must not worry about the timing of making a lump sum investment but average out the cost over time from regular contribution to sail through volatility.Assuming monthly investment of HKD 5,000 into S&amp;P 500 Index since September 2012<ul><li>Investment Principal: HKD5,000 x 120 months = HKD600,000</li><li>Final accumulated amount: HKD 1.108 million</li><li>Cumulative return: 84.8%</li><li>Annualized return during the period 11.2%</li></ul>Note: The above investment return assumption is linked to the performance of the US S&amp;P 500 index and is for reference only, you cannot invest in the S&amp;P 500 directly. The above investment return assumption only considers the principal investment and does not take into account any fees and taxes. Past returns are not indicative of future performance. The above examples are for illustration only.What does our Fund House partner Blackrock say?The wild gyrations of the markets over the last years has reminded some of the great financial crisis of 2008. Before 2019, most didn’t know what a coronavirus was. Now it’s impacting our daily lives. Unexpected stuff happens, which is why being prepared is so important. It’s why we preach diversification and suggest building portfolios that include seemingly boring investments that don’t go anywhere, making us wonder why we own them. Now we know why.The terrific returns of the past eleven years have also come with very little volatility. The correction (an index down 10% from its peak) we officially reached two weeks ago was only the 6th such episode over the past eleven years. Prior to the current decline, the worst of the bunch (down ~20%) occurred at the end of 2018. The second worst (down 19%) occurred in 2011. In both cases, the market recovered and made new highs within five months. It shouldn’t chase you away from the stock market, especially if you have a long horizon.<p class="image-container text-center" data-img-alt="english_portfolio-consideration-chart.png" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/english_portfolio-consideration-chart.width-500.png" element-type="image"><img alt="english_portfolio-consideration-chart.png" src="/media/images/english_portfolio-consideration-chart.width-500.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/>How can GoWealth help?Through technology, GoWealth leverages on a solution, which was mostly used by institutional investors, to provide a list of portfolios with optimized asset allocation aiming at diversifying the customers’ investment more efficiently, reducing the impact to investment portfolio due to market volatility. In addition to that, constitution funds are all sourced from top global asset management firms such as, AllianzGI, Blackrock, Invesco, PIMCO and Janus Henderson.GoWealth’s simulation methodology has also considered your monthly investment amount2. Investment from different timeframe, has different return expectations. This method will help you avoid timing the marketing. Through the monthly investment function of GoWealth, you can stably capture market opportunities.Try the simple user interface of GoWealth now to set your first monthly investment plan!Footnote:<ol><li>Bruno Lee is the Group Advisor of WeLab. Bruno has various management positions in multiple large-scale multinational banks and financial institutions, in which he led the development of wealth management and asset management businesses across Asia.</li><li>The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations. Such information and simulations are assumptions only. They do not reflect or project actual investment performance of the model portfolio or performance of any constituent funds therein. The recommendation is not a guarantee that you will achieve your goal.</li></ol>Important NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Buy high and sell low? Why not to take a systematic approach to growth your wealth? | 3-min read

Kristina Hooper, Chief Global Market Strategist, InvescoKristina Hooper, the Chief Global Market Strategist of Invesco issued the following market insight on 20 July 2022:Key takeaways<ul><li>Global supply chain pressures are easing: While still very elevated, global supply chain pressures have decreased, in part due to an improvement in China supply delivery times.</li><li>There are some bright spots in recent inflation data: While headline US inflation rose last month, I see a few positive takeaways in the recent data.</li><li>Positive economic signs have emerged in China: China’s second-quarter economic growth was disappointing, but June saw a solid rebound.</li></ul>As I have mentioned before in this blog and in media interviews, I find the current global market environment to be overly pessimistic. After all, two years ago we were in the throes of a global pandemic and were unsure if there could be an effective vaccine developed against COVID ever, let alone in the near term. We are in a much different place today. Of course, it’s not ideal to have such a high level of inflation and such an aggressive tightening underway for many developed market central banks, but I’d argue we are in a far better place than we were two years ago.However, that doesn’t seem to be how many feel. Pessimism is high for consumers, businesses, and financial markets in much of the world. I thought it might be helpful to provide a few reasons for optimism in this environment. Below are seven reasons to be positive in this environment.<ol><li>Global supply chain pressures are easing While still very elevated, global supply chain pressures have decreased over the last several months, as indicated by the Global Supply Chain Pressure Index. The decline in the last month was largely due to an improvement in China supply delivery times, which makes sense given that many cities have re-opened following COVID lockdowns. This indicates that at least one inflationary pressure is easing.</li><li>Commodity prices are on the decline While still elevated, commodity prices are easing as well. The Goldman Sachs Commodity Index is down 19.92% from its peak this year, which was registered on March 8.1 The Bloomberg Commodity Index is down 16.94% from its peak, which occurred on June 9. 1This indicates that at least one other inflationary pressure is easing. By the way, this in turn should moderate the rate of increase in the goods portion of the US Producer Price Index (PPI) — with a lag, of course — which suggests that goods inflation is also likely to moderate sometime soon.</li><li>There are some bright spots in recent inflation data While headline US Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) each rose in their last report, core CPI and PCE growth (which exclude food and energy prices) have very recently actually declined slightly. 2And even though last week’s PPI print was higher than expected, there were a few positive takeaways to be found. Service PPI went up by only 0.4% month over month. 3And the index for services for intermediate demand was unchanged in June, following seven consecutive advances.3 These suggest that service sector inflation may moderate in the near future.</li><li>Longer-term US inflation expectations are becoming better anchored We learned last week that five-year ahead inflation expectations, as measured by the University of Michigan survey, fell to 2.8% from 3.1% in the prior month. 4The New York Fed Survey of Consumer Expectations, which was released early last week, showed similar results. Like the Michigan Survey, the New York Fed Survey showed an increase in one-year ahead inflation expectations and a decrease in five-year ahead inflation expectations. In addition, it also showed a material decrease in three-year ahead inflation expectations, from 3.9% in May to 3.6% in June. 5These two surveys help confirm that longer-term inflation expectations are reasonably well-anchored and becoming slightly better anchored, which arguably could provide the Fed with the cover to not tighten policy so significantly that a recession ensues. More specifically, it suggests the Fed is unlikely to hike rates by 100 basis points at its next meeting; 75 basis points seems more appropriate, in my view. This is in contrast to inflation expectations in Canada. A recent Bank of Canada Survey of Consumer Expectations showed five-year ahead inflation expectations rose from 3.23% in the first quarter to 4% in the second quarter, 6which helps to explain why the Bank of Canada felt the need to increase rates by 100 basis points at its last meeting.</li><li>Positive economic signs have emerged in China China’s second-quarter economic growth was disappointing, but June saw a solid rebound. China reported a disappointing Q2 gross domestic product growth of 0.4% year-over-year due to Omicron-related lockdowns. 7However, growth broadly rebounded in June as pandemic restrictions eased. We continue to expect an economic recovery in the second half, led by industrial production and infrastructure investments due to pro-growth policies.</li><li>The COVID situation in China has improved Cities have reopened and economic activity is improving. However, there have been increases in infection rates reported recently in some areas, which has some worried that wide-scale lockdowns could occur again. To me, this seems very unlikely given that China’s COVID policy has evolved and adapted in recent months — from a Zero COVID policy to a Dynamic Zero COVID policy to a Dynamic Social Zero COVID policy. That means smaller areas, such as neighbourhoods, could be locked down in the event of a rise in infections rather than larger geographical areas. This policy is supported by daily COVID testing, which enables policymakers to react quickly to any increase in infections, before it can spread broadly.</li><li>When pessimism permeates markets, positive surprise can be more powerful Stocks have been beaten down. That doesn’t mean we won’t see more downside for some stock markets around the world, especially given that earnings expectations are likely to be adjusted downward. But I believe we are far closer to the bottom than the top — and meaningful positive catalysts could present themselves in coming months.</li></ol>With contributions from Tomo Kinoshita, Arnab Das, David Chao and Brian Levitt<ol><li>Source: Bloomberg, as of July 15, 2022</li><li>Source: Bloomberg, Macrobond, Invesco. Data through June (headline) and May (core), as at 15 July 2022</li><li>Source: US Bureau of Labor Statistics, as of 7/14/22</li><li>Source: University of Michigan Survey of Consumers, as of July 15, 2022</li><li>Source: Federal Reserve Bank of NY Survey of Consumers, as of July 11, 2022</li><li>Source: Bank of Canada Survey of Consumer Expectations, Second Quarter 2022, July 4, 2022</li><li>Source: China National Bureau of Statistics (NBS). Data as of June 2022</li></ol>Important NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities. This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Invesco: Seven reasons to be positive in this market environment | 10-min read

During the hot summer, it is already exhausting to walk outside. Apart from the rising temperature, what is worse is that Hong Kong people are simultaneously under the pressure of inflation. The living index in Hong Kong has always been high but in June, the overall consumer price has risen by 1.8% year-on-year1 . It doesn’t seem to be that serious on the surface, but if you look closely, prices of everyday groceries have leapt so dramatically. For instance, we have seen prices on fruits, freshwater fish and fresh vegetables increased by 16%, 13.3% and 10.7% year-on-year respectively1, leaving families struggling under what is already a stressful time. As for motor oil prices, which have been rising by an average of 30% in the past year2, continue to create panic among drivers.Most Hongkongers try to save their hard-earned money by reducing spending and avoiding investment. In reality, continued inflation will actively deprive us of our purchasing power over time. If the annual inflation stands at 5%, then your purchasing power will decrease by 5% every year. If you have HK$1,000,000 assets, with a 5% inflation rate, your purchasing power will reduce HK$226,000 in 5 years and HK$401,000 in 10 years3! In other words, expressing in terms of a cup of coffee that you can buy today, your purchasing power can weaken to only be able to buy 3/5 cup of the same coffee in ten years.<p class="image-container text-center" data-img-alt="Wealth_Insight(blog)_coffee.png" data-img-format="center" data-img-max-width="0" data-img-src="/media/images/Wealth_Insightblog_coffee.width-500.png" element-type="image"><img alt="Wealth_Insight(blog)_coffee.png" src="/media/images/Wealth_Insightblog_coffee.width-500.png" style="width: auto; height: auto; max-width: max(100%, 0px)"/>Inflation on the rise: Risk VS OpportunityInflation is on the rise, which seems to be negative, but it could also mean attractive investment opportunities. Simply put, interest income and nominal capital gain that are due to inflation could bring good potential returns from an investment. According to PIMCO’s latest investment review, the hike in interest rates has opened a more attractive income path to investors down the road. The reason being the yield of the 10-year US treasury bond has risen from 1.63% earlier to the current 3.25%4, a level which has not been seen in some time. Although existing bond holders will face price losses, investors who intend to enter the market can now expect to enjoy a higher potential return.How can GoWealth be of help?According to GoWealth’s forecast on capital markets, our GoWealth Digital Wealth Advisory Services have factored in the impact of interest rate hikes and inflation on different investment markets5. In fact, GoWealth has forecasted that the long-term potential annual return for global high-yield bonds will meet 4.4%6, and the potential annual return for global stocks will reach 7.3%6, which is believed to be helpful to investors in fighting inflation and keeping their purchasing power.Our GoWealth Digital Wealth Advisory Services and algorithm can assess the returns or loss in short, medium and long term according to your portfolio allocation7. Head to our app and try our goal setting feature – experience how super easy to navigate the powerful GoWealth Digital Advisory.Footnote:<ol><li>Source: Census and Statistics Department, data extracted from Consumer Prices in June 2022: <a href="https://www.censtatd.gov.hk/en/scode270.html">https://www.censtatd.gov.hk/en/scode270.html</a></li><li>Source: Consumer Council; data extracted from 19 July 2021 to 18 July 2022 based on the average unleaded petrol prices of the top five oil companies in Hong Kong: <a href="https://oil-price.consumer.org.hk/en/chart">https://oil-price.consumer.org.hk/en/chart</a> .</li><li>Purchasing power reduction amount is calculated assuming annual inflation rate remains 5%.</li><li>Source: PIMCO; data as of 22 June 2022.</li><li>The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 12,000 simulation paths for the model portfolios projected over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations. Such information and simulations are assumptions only. They do not reflect or project actual investment performance of the model portfolio or performance of any constituent funds therein. The recommendation is not a guarantee that you will achieve your goal.</li><li>Forecasted potential annual return reflects our capital market forecast on such asset class in terms of risk, return and correlations. Such information is assumption only, which does not reflect or project actual investment performance or return of such asset class.</li><li>Each Model Portfolio corresponds with certain risk profiles and asset classes which consists of a certain number of funds selected by the Bank. The asset allocation of asset classes is determined by AllianzGI and the Bank. The Selected Funds within a certain asset class and their composition in the Model Portfolio will be determined at the Bank’s sole discretion and may vary from time to time.</li></ol>Important NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: https://hk.allianzgi.com/ .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

Hot inflation warning! | 1-min read

Hong Kong and the US stocks have been very turbulent this year, causing losses to investors. The Fed’s interest rate hikes have resulted in market slumps as at 14 June 2022. Investors are also concerned with the next interest rate increase of 75 basis points, as the Fed announced on 15 June 2022.Net total returns for major indices*<ul><li>Hang Seng Index: -9.4%</li><li>MSCI World Index: -21.0%</li><li>MSCI AC Asia ex Japan: -15.9%</li><li>Bloomberg Global-Aggregate: -10.7%</li><li>FTSE Asia Broad Bond : -11.9%</li><li>Bloomberg Global High Yield: -13.5%</li></ul>Source: Bloomberg, year-to-date net total return as at 14 June 2022Interest rate rise may not be a negative impact on stocksHow should investors manage the downside risk? Interest rate hikes usually have a negative impact on bond performance, as bond prices drop when yields increase. Nonetheless, the future returns may increase after getting through the low interest rate environment. If we look at the past four rate hike cycles, S&amp;P 500 has jumped 15.3% on average from initial hike to last hike. Therefore, rising interest is not necessarily a bad thing for stock markets historically.Three investment strategies under rate hike cycle by AllianzGI<ol><li>Rate hikes will affect bond prices, especially long-term bonds. Investing in short-term bonds could help to ease the impacts from rising rates.</li><li>In the short run, there is still uncertainty in the market with increasing concerns related to economic growth, interest rate rise trend, inflation, geo-political risk etc. Investors should balance the risk and return, and build a resilient investment portfolio.</li><li>From the long term investment prospective, a more balanced portfolio with stocks and bonds can provide both potential returns and downside cushioning.</li></ol>How could GoWealth help you?With reference to the capital market predictions from AllianzGI, GoWealth has accounted for impacts to different investment markets from future rate rise in the recommended investment portfolio1. GoWealth makes good use of short-term bonds in the global fixed income allocation, as to provide protection in volatile markets2.Our GoWealth Digital Wealth Advisory Services and algorithm can assess the returns or loss in short, medium and long term according to your portfolio allocation. It can also project market trends in the next 50 years, which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations1. GoWealth Investment is a medium to long term investment, investors should not over panic on short term fluctuation.If you wish to check you goal details, check out our GoWeath&gt;My TargetFootnote:<ol><li>The algorithm in the GoWealth Digital Wealth Advisory Services relies on the portfolio simulation database containing 1,000 simulation paths for each model portfolio over the next 50 years (i.e. 600 months), which reflects our capital market forecast on various asset classes and the model portfolios in terms of risk, return and correlations.</li><li>Each Model Portfolio corresponds with certain risk profiles and asset classes which consists of a certain number of funds selected by the Bank. The asset allocation of asset classes is determined by AllianzGI and the Bank. The Selected Funds within a certain asset class and their composition in the Model Portfolio will be determined at the Bank’s sole discretion and may vary from time to time.</li></ol>Important NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse the information or opinion provided by any information provider or fund house. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be). You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed. WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.Allianz GI is a leading active asset manager. For details, please visit: <a href="https://hk.allianzgi.com/">https://hk.allianzgi.com/</a> .This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.

How Rising Interest Rates Will Impact My GoWealth Investment? | 1-min read

When we talk about digital banks, what is the first thing that comes to your mind? In this article, we are going to debunk the myth that “digital banks are unreliable”, and introduce WeLab Bank to you!Is digital banking reliable?Some of you may think digital banks are a bit risky as they are “digital” without any physical branches. In reality, the eight digital banks licensed by the Hong Kong Monetary Authority are required to comply with a stringent set of regulations. Except for a few banks in Hong Kong are excluded from the Deposit Protection Scheme as they are covered by similar schemes in their respective countries of incorporation, all licensed banks in Hong Kong are members of the Scheme.How will the compensation amount be calculated?Eligible deposits taken by the Bank are entitled up to a maximum of HKD 800,000 compensation per depositor. If you have more than one account in the same bank, the amount in each account will be aggregated for calculating the compensation; if you have different accounts at different bank, the limit of HKD 800,000 will be applied to each bank.What is WeLab Bank?WeLab Bank is a digital bank licensed by the Hong Kong Monetary Authority and was founded by WeLab Group. Unlike typical banks, we&#x27;ve seamlessly integrated technology into our lives and redefined how Hong Kong banks should have served you. WeLab Bank is also a member of the Deposit Protection Scheme and your eligible deposits taken by WeLab Bank are protected by the Scheme up to a limit of HKD 800,000 per depositor. This way, you can rest assured knowing that your WeLab Bank deposits are safe and protected!3 things you should know about the Deposit Protection Scheme (DPS)How can I apply for Deposit Protection Scheme?Your eligible deposits will be automatically protected under this Scheme without the need for you to apply for anything or pay any fees. In case a member bank of DPS (a Scheme member) fails, the DPS will pay a compensation of up to a maximum of HKD 800,000 to each depositor of the failed Scheme member.2.How will the compensation amount be calculated? All deposit accounts are entitled up to a maximum of HKD 800,000 compensation. If you have more than one account in the same bank, the amount in each account will be aggregated for calculating the compensation; if you have different accounts at different bank, the limit of HKD 800,000 will be applied to each bank.3.What deposits are protected by the DPS?Eligible deposits include all types of ordinary deposits such as current accounts, savings accounts, and time deposits with a maturity not exceeding five years. Regardless of what currency your eligible deposits are (Hong Kong Dollars, Renminbi, or other foreign currencies), they will be protected by the scheme.But if your bank account is under an overseas bank branch, your account will be counted as an offshore deposit which will not be protected by the DPS.Did the information above reinforce your confidence in digital banks? If so, remember to share it with your friends!

Behind the Scenes

Deposit your money in Digital Banks with a peace of mind | HKD800K Deposit Protection Scheme

Want to know the advantages of GoWealth? Let’s first check out how GoWealth is different from investment-linked assurance schemes (also commonly known as ILAS):1 . More flexible investment terms, no lock-up periodThe investment term of ILAS is generally long and may reach 10 years or more, which helps investors to build investment habit in the long-term and helps achieving dual objective of investment and estate planning. However, if the policyholder terminates the policy payment or surrenders the policy before the designated period of the insurance policy, the value of the policy amount that can be withdrawn will be much lower than the value of the premiums paid. Investors shall take note of the long lock-up period feature of ILAS (Details can be referred to IFEC website#). On the contrary, through GoWealth, you can directly invest, with no lock-up period, in top global funds according to the latest market prices.2. No hard-sell, more intelligentSimply invest with GoWealth through WeLab Bank app📱 anytime, anywhere. With no brokers involved in the sales process or influencing your decisions, you can truly invest on your term, and enjoy our “Set, Track, Goal” feature at your fingertips. We are also backed by 5 top global fund houses - Allianz Global Investors, BlackRock, Invesco, Janus Henderson and PIMCO, to provide detailed analysis with our sophisticated system, so you can adjust your investment goals anytime📈.3. Transparent fees and no redemption feeWhile ILAS may not charge switching fee generally, there are still various types of fees and charges involved, especially in the initial years of the policy, such as surrender charges, withdrawal charges, and administrative/management charges, all of which affect investors’ returns. But GoWealth only charges a one-time subscription fee, with no extra fees if you want to redeem early!Regardless of whether choosing to invest in funds or ILAS, investors should make a well-informed decision after considering their own investment objectives, investment horizon and fees and other factors!#Investor and Financial Education Council (IFEC) - Investment-linked assurance scheme: https://www.ifec.org.hk/web/en/financial-products/insurance/product-types/ilas/index.pageDisclaimer: The above information is for reference only and does not constitute any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. The investment products or services are not equivalent to, nor should it be treated as a substitute for, time deposit. Investment involves risks, the value of investment products may go up or down and the investment products may even become valueless. Past performance is not indicative of future results. The contents above have not been reviewed by the Securities and Futures Commission.

Investment 101: Funds VS ILAS | 3-min Read

Growing your income and reducing your expenses – these are the keys to save money. That sounds easy, but how many of us can actually achieve our financial goals? In the Worldwide Cost of Living 2020, Hong Kong was ranked first as the city with the highest living costs. Everything is expensive here, and it always takes a tremendous effort for people to achieve their financial goals. If you are looking for ways to save money, here are a few tips that you may be interested in!1.Create a savings goalBefore you start saving, ask yourself: What am I saving for? Travel? Buying a property? Marriage? Having a savings goal is the best way to motivate yourself! Once you’ve identified your goal, you are less likely to spend impulsively, and more likely to stop and reconsider before making any expenses.Even with an ultimate goal in mind, a plan is essential in order to meet your objectives. There are many different ways to do this – for example, you can consider breaking it down into weekly, monthly, and yearly saving goals to make it more progressive and realistic. For extra motivation, you can also consider printing out your plan as a constant visual reminder, or even invite your friends to join your savings challenge together!2.Establish a budget and track your spendingOnce you’ve set up your savings goal, it’s time to carry out your plan! Plan a budget and set aside a portion of your money for savings purposes, while for the rest of the money that’s planned for spending purposes, jot down all of your transactions and review each of them. This will be very useful for you to understand where your money is going, so that you can amend your budget goal accordingly. Find a way to keep track of your progress – there are plenty of wealth management apps, or even an Excel spreadsheet can also do the job . If you’re using WeLab Bank, all of your income and expenses will be shown in your WeLab Bank account, so that you have a full picture in one place without having to do the tracking manually.3.Cancel unnecessary subscription servicesBesides fixed services like insurance and telecom fees, let&#x27;s look at how many monthly plans you’ve subscribed to.Many of you may have 3-4 music subscriptions, but you’re most likely only using one of them. You may have a gym membership, but sometimes your gym closes too early or is just too far from your office or home, and so you end up paying for a one-time entrance fee and go to the nearest 24/7 gym. Another common scenario may be subscriptions to cloud drives for your 100,000 photos, of which 50% of them are images that you won’t flip through again.How many subscription services are you subscribed to? Think about which ones you really need and which ones are just “nice-to-haves”, and see if there is anything you can unsubscribe from!4.Spend smart with card productsAlthough we’re talking about savings, some daily spending is essential and unavoidable. By spending smartly with credit cards and taking advantage of different loyalty programs, you can maximize your savings! However, if you can’t control your spending, it’s best to avoid spending future cash with credit cards, as you’re essentially spending on a credit line that you’ll need to repay on time to avoid overdue charges and penalties. To ensure that you’re only spending money that you actually have, our WeLab Debit Card will deduct money directly from your core account, so that you’ll only be able to spend what you have! How to apply for a WeLab Dedit Card 👉 <a href="https://www.youtube.com/watch?v=OeXzX2_EyZI&amp;feature=emb_title">https://www.youtube.com/watch?v=OeXzX2_EyZI&amp;feature=emb_title</a>5.Monetize Your PassionBesides cutting costs, you can also look for ways to earn extra money with a side hustle! Typical side hustles include: private tutoring, teaching piano; or if you love writing, being a freelance copywriter is also a good idea. If photography is your thing, try selling photos on stock photo websites, or look for some weekend event photography jobs!Not a big fan of the ideas above? Watch our &quot;How to earn money by side hustle&quot; video to get more inspiration!Saving is easier than you think! Find methods that help you save and work for you, and say goodbye to overspending!

5 Simple Ways to Start Saving Money

Want to retire at 40? Want to enjoy the rest of life as soon as possible by achieving financial freedom? We’re sure that these dreams are common amongst a lot of people, so in this article, we’re going to share a few easy-to-implement methods that can help you make money while you sleep!Method 1: Join a time depositPutting your money in time deposits is one of the best passive income ideas with very minimal risk. Simply put your money into a time deposit, and sit back and relax while you earn interest! One thing to note is that, since time deposits are liquid and less risky than other investments, they generally pay a very small amount of interest. As you can probably imagine, generating any meaningful income from fixed deposits would require a large initial deposit, as the interest rates are traditionally dictated by the deposit amount.For those of you who want to receive good interest rates without a large initial deposit, you can try GoSave, a time deposit product launched by WeLab Bank! Unlike traditional deposit products where the interest rate is determined by the deposit amount, your GoSave interest rate is determined by the number of joiners in the same time deposit pot, regardless of how much your deposit amount is: the more people who join, the higher the interest rate for all! We understand that many people don’t like to do time deposits because they are worried about getting penalised for withdrawing money before the end of the deposit period. So, to give extra flexibility, people can withdraw your savings prematurely up to 2 times from GoSave with no charge incurred!Method 2: Tidy your home on a regular basisThat’s right! It’s popular now to sell second-hand products you don’t have much use for through online trading platforms – whether it’s old books, toys, jewellery, watches, or even household items such as shoe cabinets and sofas, you can sell those on these platforms! Not only is this environmentally friendly, but you can generate a bit of profit through selling these items!Method 3: Run your YouTube channelWe’re sure everyone has come across YouTube videos before, with their wide variety of content for everyone. Other than providing entertainment for us, they are also mediums that can help generate passive income for their creators! The rule is: the more views for a video, the higher the income!For those of you who want to make money through YouTube, the first step is to join the &quot;YouTube Partner Program&quot;, and once you’ve passed the review, you can start receiving a share of the advertising revenue. Of course, it often isn’t smooth sailing right from the beginning, so if you want to earn some passive income through YouTube, be prepared to invest a lot of time and effort!If you want to explore more ways on generating passive income, this video might be useful 👉 <a href="https://www.youtube.com/watch?v=JoGNl4AnJCU">https://www.youtube.com/watch?v=JoGNl4AnJCU</a>Earning passive money is not difficult at all. All you need to do now is get started!

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