I mean when you look at their risk appetite asset picture it's a lot that we are facing that China concerns the war in Ukraine.
These inflationary risks Fed hikes. Just how much do you try and allocate towards risk in this
environment. So we have been reducing you know since the beginning of the war
in Ukraine or location to risk assets. We used to be overweight 4 percent into equities. And since then we have reduced our
exposure by something like 10 percent. So we have sold 4 percent of equities and we have put in place put spreads strategies in
our client portfolios to protect that on the downside. So that's why now we have effectively an allocation of 6 percent
underweight in equities. And as you were mentioning you know the three risk are well identified in the market. The situation in
Ukraine and Russia is probably a situation of escalation of conflict right now. So that's still the biggest worry that we
have as far as risky assets are concerned. If we look at the situation in China you know the Covid-19 situation and the zero
Covid policy are hurting growth. And we do expect much less growth in 2022 than what the authorities were expecting. And the
last issue of inflation you know especially in the US has been tackled by the monetary authorities. And we have a path of
interest rate ISE and quantitative tightening that is well identified by the markets. Now we look as well amidst this
backdrop of dollar strength and that's playing through into and too I mean we saw the rupee hit a record low. I've got the I
wanted an 18 month low and in fact the one rout creating the most oversold condition since the 2015 devaluation. I much fear
the dollar strength. Do you see how much for the pain to MDC. I think we have already seen a lot of strength. So we have been
actually reducing our exposure to U.S. dollar. We are still overweight but only by 3 percent. Now in our client portfolios
and as you are mentioning as you'll get really there is an impact on emerging market because the spread between the
emerging market in terms of yield versus the US dollar is shrinking and therefore doesn't makes emerging currencies less
attractive. But all emerging currencies are not equal. The ones that are the most vulnerable are the ones that spend the most
money in order to tackle the Covid-19 crisis and also the ones that are more dependent on energy imports.
When we look at the overall picture in Asia we've got regional stocks as I mentioned pairing some of those earlier hefty
losses. But we're still down for a seventh day now. This is the longest losing streak we've seen since the height of the
pandemic in March 2020. Where do you see some opportunity here in Asia to snap up some of these heavily beaten sectors and
stocks. I'm not sure that the opportunities are yet in Asia. We have a preference for U.S. stocks over European and Asian
stocks. But there is a point where I think it will be interesting to consider the Chinese equities as a buying
opportunity. We are not there yet. We are coming from an underweight position in Chinese equities and we are now neutral.
We are not courageous enough yet to get overweight. We need to see a bit more positive help from the Chinese
authorities whether on the military side or on the fiscal side in order to give us more confidence in their markets. That
impact though of the China slowdown very much hitting the base metals market being reflected in the likes of copper in iron
ore. You are favoring commodities though. Tell us why. Well
commodities are a very good edge against inflation. So if you are worried about inflation that's one one situation in terms of
global asset allocation. What we are recommending is diversification.
So we recommend to invest still into equities but we have a preference for a value and quality bias. We also start to find
government bonds attractive. Whether the nominal side of them we have you know U.S. 10 year Treasury yield come in close to 325.
And also having a real yield close to zero point three percent positive which is good news. And then we want to diversify this
exposure with a European real estate for instance which is linked very often in terms of friend to inflation. And then as
you seeing a broad based exposure to commodities including energy including precious metals such as gold and including
industrial metals such as copper for example you mentioned it's a bit too early to get into Asia at the moment. I did. Just want
to get your thoughts on what we're seeing in the Philippines with this reaction to the election result or the projected
election result. We've seen the peso in particular as well being hit hard hitting it. Excuse me a three year low yesterday. What
sort of I guess allocation do you have to the likes of some of these smaller Southeast Asian nations. So we'll be cautious
right now on Philippines because one reason why the Philippine peso has been reasonably stable lately was mainly due to the
moratorium on fiscal spending. Now with the new government coming into place. We do expect that it will be quite a lot of
investment in infrastructure. And then you know the current account situation it those great in Philippine. The balance of
payment is quite negative. So we do expect that to continue and therefore we are not very positive on the Philippine passive.