Our barbell approach comprising high-quality growth and value stocks has boded well for our clients for the past several years and has offered attractive reward with balanced risks over time. The investment strategy builds a robust, all-weather portfolio by integrating the relative strengths of both growth and value components.
We do not think the growth rotation to value, mark the end for growth stocks. We continue to maximize our efforts to hunt for structural growth opportunities. On the growth side of the spectrum, we like disruptors, innovators and companies that are reshaping industries or create new ones entirely. These ideas are derived from companies having powerful and persistent forces, such as in Fintech, E-commerce, the application of digital technologies, health care (Genomic revolution, Telemedicine), Energy transition and the re-emergence of China (Asia consumption). On the other end of our barbell spectrum we primarily focus on defensive businesses that we think can ride through an extended period of economic volatility.
In the current low rate environment our preferred allocation in Fixed Income are currently Asia Investment grade and Asia High yield.
