Deutsche Bank Wealth Management – 45.5%
Deutsche Bank has reduced its equity allocation from 46.5% to 45.5% with the coronavirus outbreak.
The bulk of this is being invested in the US, that accounts for 17% of its balanced portfolio.
Within the market, Deutsche likes consumer staples, healthcare and IT, specifically online business models such as e-commerce and online entertainment.
Covid-19 induced demand for household and personal care products has boosted consumer staples, noted Jason Liu, head of chief investment office for emerging markets.
‘But as most of the uptick in demand and subsequent earnings growth has been priced in, it is no longer cheap from historical and relative valuation.
‘A possible strategy going forward may be to go for high quality stocks at better prices, with a selection of cyclically-tilted value stocks,’ Liu said.
These stocks are expected to weather the recession, and take disproportionate advantage of an economic recovery, he added.