UOB Thailand recently convened its Mid-Year Investment Outlook seminar, which aimed at equipping investors with strategies to navigate the latter half of 2024 with resilience amid global uncertainties.
As we approach the end of the second quarter, the year has presented considerable challenges for investors, with geopolitical tensions and US-China economic friction looming large. Against this backdrop, UOB Thailand advises wealth customers to adopt dividend investing strategies to secure consistent passive income. Additionally, building a robust portfolio of Core investments, including multi-asset strategies diversified across various regions, sectors, and asset classes, is recommended to meet long-term financial objectives. The seminar also delved into Tactical ideas focusing on global healthcare, Asia ex-Japan, and ASEAN, offering stability during market volatility.
Thailand's GDP is forecasted to expand by 2.8 percent in 2024, driven by tourism, household consumption, and public spending. Enrico Tanuwidjaja, Economist at Global Economics and Market Research, UOB Group, noted that while high-frequency economic indicators suggest subdued activities domestically, the resilience of the external sector provides a silver lining.
With the resurgence of merchandise exports, government expenditures, and fiscal stimuli, UOB forecasts GDP growth of 2.8 percent in 2024 and 3.0 percent in 2025. Key drivers include sustained tourism inflows, a rebound in manufacturing exports, and steady domestic demand coupled with increased public spending."
Strategies for Portfolio Resilience
Abel Lim, Head of Wealth Management Advisory and Strategy at UOB Group, stressed the importance of resilient portfolios in achieving long-term financial goals. He said, "Given heightened market sensitivity to economic indicators amid divergent growth and inflation projections, consistent income generation through dividend investing is crucial."
He also recommended core investments such as multi-asset strategies and investment-grade bonds to capitalize on higher yields amidst persistent inflation. Diversifying across asset classes, regions, and sectors can help mitigate portfolio volatility, highlighting the potential benefits of longer-duration bonds in the current economic landscape.
Regarding Top Ideas, Mr Lim suggested Global Healthcare for clients inclined towards stocks, citing its defensive characteristics and long-term growth potential driven by demographic shifts and technological advancements. Despite short-term challenges in the Asia-ex Japan/ASEAN/China region, Mr Lim remained optimistic about medium-term prospects, citing resilient regional consumption and attractive valuations.
Digital Advancements and Wealth Management Solutions
Mr Gidon Jerome Kessel, Head of Deposit and Wealth Management, UOB Thailand, underscored UOB's commitment to combining human expertise with digital capabilities to deliver personalised services. He highlighted the introduction of a new tool to assist customers in creating a personalised financial wealth portfolio called My Wealth Planner. He said "To assist clients better comprehend their current financial situation and provide the groundwork for sustainable investments, My Wealth Planner Tool will build the framework that can direct consumers towards their investment objectives. All customer data is gathered and processed by My Wealth Planner, which also understands their investment risk profiles and creates investment strategies for funds and insurance. In order to guarantee that customers' financial circumstances are met, the tool also enables customers with sound investment decision and keeps a careful eye on their progress."
He also highlighted the introduction of the UOB's Wealth feature in UOB TMRW enables investors to buy - sell - switch mutual fund allowing investors to easily manage their wealth from their mobile phones. Investors can access direct offshore funds, allowing direct investment in foreign currency-denominated mutual funds from 14 renowned fund houses, including Blackrock, PIMCO, JPMorgan, and Fidelity.
In order to reduce the risk of unanticipated events, investors need to be aware of their risk appetites and keep a diversified portfolio. With a broad range of wealth advisory tools and offshore and onshore investment products, UOB's team of dedicated client advisors and specialists provides professional advice based on what matters to individual investors. Investors should always ensure that they understand what they are investing in and have taken into account any potential risk factors before making any investment.