Page 8 - 2Q2021 RETAIL WEALTH ADVISORY Playbook

Region / Previous Current Deliberation
Country Stance Stance

 Effective implementation of a vaccine programme is key
to curb further impact from COVID-19, which prevents us
from turning overly optimistic on the market.
Source: Maybank Group Wealth Management Research, Maybank Kim Eng.
Note: Rows highlighted in yellow indicates changes in stance.
Fixed Income

Region / Previous Current Deliberation
Country Stance Stance
 Expensive valuation is one of the main reason to
underweight the sector.
 The long duration nature of the segment makes it more
DM IG Neutral Underweight susceptible to a rising rates environment.
 We see limited scope for further yield compression to
offset duration risks given the already-tight credit
spreads.
 This segment offers decent yields, and the expectation of
a strong economic recovery should limit corporate
defaults.
DM HY Neutral Overweight  This segment provides exposure to the energy sector,
which could benefit from firmer oil prices.
 A larger credit spread against government yields provides
an additional cushion to buffer interest rate movements.

 Demanding valuations vis-à-vis Asian peers have led us to
EM IG Neutral Neutral maintain our stances on both EM IG and EM HY.
 A broad economic recovery is also likely to be delayed
amid struggles to battle COVID-19.
 Policymakers may find a tough balance between economic
growth and rising inflation risks, leading to tighter
EM HY Underweight Underweight monetary conditions in selected countries, thus tempering
our outlook for the region.

 We retain our overweight stance on Asia credits as
Asia IG Overweight Overweight fundamentals should continue to improve alongside the
recovery out of COVID-19.
Asia HY Overweight Overweight  Both segments of Asia credits offer decent carry against
US peers.

Source: Maybank Group Wealth Management Research, Maybank Kim Eng.
Note: Rows highlighted in yellow indicates a change in stance.

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