UOB Asset Management (UOBAM) has unveiled its first quarter 2026 investment strategy, forecasting a more favourable investment landscape as fiscal and monetary conditions improve. The firm anticipates economic risks to diminish, bolstered by fiscal incentives, US interest rate cuts, and robust AI-driven investments. Corporate earnings are expected to rise at double-digit rates, with Asia leading at 18%.
UOBAM is adopting a slightly overweight stance on equities, particularly in Asia and the US, whilst maintaining diversification across fixed income and commodities. Anthony Raza, head of UOBAM Multi-Asset Strategy, stated, “Whilst the music is playing, we have to keep dancing. With strong corporate earnings and healthy balance sheets in the tech sector, we believe the market expansion cycle can continue.”
Within equities, UOBAM favours Asia due to attractive valuations, strengthening currencies, and robust domestic demand. The US is upgraded to overweight, driven by strong technology and AI growth. In fixed income, diversification is advised to manage valuation risks, focusing on high-quality developed market credits and select emerging market sovereigns. Gold remains a preferred safe-haven asset amid geopolitical uncertainties.
UOBAM, a subsidiary of United Overseas Bank Limited, manages S$408 billion in client assets and has a significant presence across Asia. The firm is recognised for its digital innovation and sustainable investing initiatives, having received numerous awards in these areas. As conditions improve, UOBAM’s balanced positioning aims to maximise potential returns whilst managing risks.
