Outlook 2026
Investing with Clarity and Conviction
Concerns about market outlook and geopolitical tensions are driving demand for diversification across Hong Kong and Singapore.
Against this backdrop, sentiment among fund selectors shows strong appetite for income-focused strategies in 2026. They believe this will provide the resilience and stability they want.
These and other insights were gathered as part of a survey of 60 respondents conducted in September 2025 by Fund Selector Asia in partnership with Aberdeen Investments.
5 Key Survey Takeaways
What Hong Kong and Singapore fund selectors think about 2026
Cautious about markets
They are cautious about the year ahead, but believe diversification across asset classes, plus a more active and flexible approach to risk management, will help them navigate volatility.
Diversification top of mind
They are prioritising Asia Pacific as a region, while eyeing a mix of global equities along with Asia FI and EM debt in public markets, and seeking private markets for alternative exposure.
Flexible about risk and return
They prefer higher allocations to alternatives to tackle today’s markets.
Income in favour
Income strategies are important for the majority, amid hunt for steady and predictable returns.
In search of the right partner
They increasingly want their external fund managers to have the required expertise and track record, as well as service them with high-quality relationship managers.
David Hanzl
Head of Wholesale – Asia Pacific
"Investors can generate income in 2026 via a mix of global equities, high-quality Asian and EM bonds, and IG and short-dated corporate credit, supplemented with alternative assets."
David Hanzl
Head of Wholesale – Asia Pacific
2026 In Focus
Macro and Market Outlook
From policy uncertainties to rate-cutting to political shake-ups, and more—global economic momentum is shifting and key themes are emerging which need a close watch.
The macro and market outlook continues to be characterised by a wide variety of complex and fast-changing signals and risks, which will shape economic and investment performance.
The US is likely to remain a source of policy uncertainty for global markets in 2026, as President Trump’s administration contends with challenges to its tariff policies and difficult mid-term elections, while the US Federal Reserve (Fed) faces pressures on independence.
Credit Outlook
Income Outlook
Emerging Markets and Asia Outlook
Funds in focus
Short Dated Enhanced Income Fund
Expand your horizons. Enhance your potential.
Diversified Income Fund
Access the key asset classes with ease through a truly diversified portfolio.
Global Dynamic Dividend Fund
Income you'll see again and again and again
Survey Insights
Diversification top of mind
Diversification is set to be the dominant driver of investment decisions for fund selectors in Hong Kong and Singapore over the next 12 months, according to 40% of respondents.
As a result, the preferred choice of mainstream asset classes is global equities (50%), followed by Asia fixed income and emerging market (EM) debt.
This aligns with what David Hanzl, Aberdeen’s head of wholesale in Asia Pacific, highlights as an effective way to generate income – via a mix of global equities, high-quality Asian / EM bonds and supplemented with alternative assets. “In addition,” he added, “the environment of slow but positive growth is historically supportive for global corporate credit, especially investment grade and short-dated credit. ”
For EM and Asia exposure, he is optimistic about EM equities, China equities and Asia quality bonds.
Meanwhile, for less liquid opportunities, the survey showed private markets as a clear favourite across both locations, with meaningful appetite for real assets.
Factors shaping investment decisions over the next 12 months
Flexible about risk and return
Diversification across asset classes is also the main way fund selectors in Hong Kong and Singapore expect to enhance returns in today’s environment. Implementing more future-focused investment themes is another approach to follow.
When it comes to navigating volatility and higher correlations between asset classes, survey respondents are keen to increase allocations to alternative assets, as well as adopt more active and flexible risk management strategies.
Effective ways to navigate volatility and higher correlation between asset classes
Income in favour
There is little doubt about sentiment towards income-focused strategies for 2026, with over two-thirds (71%) of fund selectors in Hong Kong and Singapore are either ‘positive’ or ‘strongly positive’.
The primary objective is a steady and predictable income stream (44%), followed by diversification and risk management (27%).
Primary objective from an income strategy over the next 12 months
In search of the right partner
Beyond investment capabilities, the quality of the relationship manager is a significant drawcard for fund selectors in Hong Kong and Singapore.
Key attributes to see in a fund manager in current markets
Survey commissioned by Aberdeen Investments, conducted by Fund Selector Asia, September 2025.