Mr. Adrian Mazenauer, Chief Executive Officer of SCB-Julius Baer Securities Co., Ltd., said that the firm’s investment theme for the second half of 2026, “Harnessing Alpha in a Fragmented World Order,” reflects a world that is becoming increasingly fragmented both economically and geopolitically. While the first half of the year was marked by geopolitical tensions in several regions, particularly the Middle East, financial markets have continued to demonstrate resilience and an ability to look beyond short-term political developments. At the same time, the global economy has remained on a solid growth trajectory. Several long-term structural trends are expected to shape the future economic landscape, including rising defence spending, the transformation of energy systems, the regionalisation of supply chains, accelerating investment in artificial intelligence (AI) infrastructure, and renewed momentum in capital markets driven by large-scale initial public offerings (IPOs). SCB Julius Baer therefore maintains a constructive investment outlook, viewing change and volatility as sources of opportunities for generating returns.

From an investment strategy perspective, SCB Julius Baer recommends an overweight position in longer-duration fixed income, particularly U.S. 10-year Treasury bonds, supported by moderating inflation and a greater likelihood of interest-rate cuts than hikes. The firm also sees attractive opportunities in UK and Australian government bonds, supported by country-specific economic and fiscal factors. In equities, SCB Julius Baer maintains a balanced positive outlook. AI-related sectors continue to benefit from strong earnings growth and sustained capital expenditure by major technology companies, particularly in infrastructure that will support the next phase of AI development.

The firm also favors European equities, particularly the banking and utilities sectors, while maintaining a positive view on Asia, where long-term growth prospects remain attractive. Japan is expected to benefit from increased investment in AI infrastructure and government policies designed to attract foreign investment. In China, efforts to strengthen technological competitiveness have created opportunities in new technology sectors. Although China’s large-cap technology stocks have experienced a period of weakness, improving revenue growth suggests potential for a recovery in the Chinese equity market.

In commodities, SCB Julius Baer remains positive on gold, supported by continued purchases by central banks, geopolitical uncertainty, and the potential for a weaker U.S. dollar. By contrast, oil prices are expected to face downward pressure from supply-and-demand fundamentals, as well as the long-term structural transition toward cleaner energy sources.

Mr. Hao Jie Poh, Director, Global Client Solutions, KKR, shared insights on private markets. He highlighted Private Equity is becoming increasingly important as an alternative asset class due to the large size of the investable universe and the significant number of companies that remain outside public markets, where valuations can be more attractive. Active ownership and operational value creation can also help enhance long-term returns. Private Infrastructure represents another attractive asset class, offering stable income streams, diversified growth opportunities, inflation protection, and enhanced capital preservation.

SCB Julius Baer believes that in an increasingly complex investment environment, successful portfolio management requires flexibility, diversification, and a strategic approach to asset allocation. The firm remains committed to helping clients achieve sustainable long-term wealth creation through its global wealth management expertise under the philosophy, “Your Legacy. Our Promise.” Mr. Adrian concluded.