AllianzGI says selective asset picking key amid global uncertainty
The current market reflects a reduction in risk rather than the total disappearance of risk.
Jakarta (ANTARA) - Investment management firm Allianz Global Investors (AllianzGI) believes that selective investment asset selection is key to maintaining portfolio performance amidst global economic and geopolitical uncertainty, even as the world economy continues to show resilience in the second half of 2026.
The AllianzGI Chief Investment Officer (CIO) team explained that global uncertainty is still influenced by persistently high oil prices, inflation remaining above targets in most developed nations, and the potential for increased volatility ahead of the US midterm elections.
“After being disrupted by US tariff policies, the geopolitical situation in the Middle East is now beginning to show signs of stabilisation. However, several factors still require investor scrutiny, including energy prices, inflation, and US political dynamics, which have the potential to affect market sentiment,” the AllianzGI CIO team stated in an official statement received in Jakarta on Thursday.
This assessment was presented by AllianzGI in its Q3-2026 House View report, titled ‘Withstanding Shocks’, which highlights global market prospects and investment strategies in the face of various economic and geopolitical risks.
According to AllianzGI, the base scenario still shows a resilient global economy. However, the current market reflects a reduction in risk rather than the total disappearance of risk.
This global economic resilience is supported by ongoing investment in Artificial Intelligence (AI), supportive financial conditions, and the resilience of household and business consumption.
The company assesses that an investment approach that merely follows general market movements is no longer sufficient to generate optimal returns.
The ability to actively select countries, sectors, and investment instruments is considered the primary factor in maintaining portfolio performance amidst changing market conditions.
“For investors, what matters is not just the direction of market movement, but also the various possible outcomes that may occur. The risk of persistently high inflation and interest rate prospects are driving investor attention towards assets that offer value, income, and quality characteristics,” said the AllianzGI CIO team.
In the equity market, AllianzGI believes that value stocks still hold attractive prospects, particularly in a market still driven by AI developments.
In addition to providing diversification benefits, this segment is assessed by the company as having the potential to benefit from interest rate conditions that remain higher for longer, while also reflecting a return of investor focus to company fundamentals.
The firm also notes that AI infrastructure development is shifting from the model training stage towards wider-scale implementation, thereby opening more diverse investment opportunities, including in the semiconductor, data centre, and other supporting technology sectors.
In fixed-income instruments, AllianzGI believes that active management of government bond exposure and a focus on high-quality credit instruments can help mitigate market volatility.
The company also favours investment-grade bonds in the US and Europe over high-yield bonds.
“Despite the ongoing geopolitical uncertainty, we remain positive on the equity market, particularly from a systematic rather than fundamental perspective, with a preference for US and emerging markets over Europe and Japan,” said the AllianzGI CIO team.
In emerging markets, AllianzGI considers investment opportunities to remain attractive but require a selective approach, such as choosing oil-exporting countries over oil-importing nations.
Furthermore, the company expressed a positive view towards 15-year Peruvian Government bonds and 10-year Brazilian Government bonds in local currency.
Additionally, AllianzGI remains positive on gold as a diversification instrument amidst increasing market attention to central bank independence and the US dollar outlook. Commodities with long positions are also considered one of the instruments for portfolio diversification.
“In conditions of market uncertainty, the use of option strategies can enhance portfolio diversification,” said the AllianzGI CIO team.