Top CIOs cautious on global growth amid Trump and China policy uncertainties

The chief investment officers (CIOs) of some of the world’s largest asset managers remain cautious about the macroeconomic outlook after last year’s market gains, as they navigate potential minefields this year.

Top executives’ confidence in global growth prospects is at one of its lowest points in recent years, with US president-elect Donald Trump set to take over the reins next week and a clear picture yet to emerge on China’s policies for rejuvenating its economy.

“We’ve had a very good growth picture for the last few years, but the world is still dealing with very bifurcated growth and risk pictures,” Manraj Sekhon, CIO of Templeton Global Investments, said in a panel discussion at the Asian Financial Forum in Hong Kong on Tuesday. Templeton Global is the private investing arm of US asset manager Franklin Templeton, which manages US$1.6 trillion of assets.

He said there would be significant winners and losers and that he expected to see “extended volatility” across asset classes this year.

The S&P 500 Index gained 23 per cent last year. China’s CSI 300 Index climbed 15 per cent, while Hong Kong’s Hang Seng Index rose 18 per cent, snapping an unprecedented streak of four straight annual losses.

Challenges brought by geopolitical and political shifts draw close attention from the investment community. The incoming Trump administration’s policies on trade, tariffs and immigration have added a layer of complexity to the markets, panellists said.